South San Francisco, California-based Core-Mark Holding Company, Inc., one of the largest North American distributors to the convenience retail industry, announced May 9 that it has signed a definitive agreement to acquire Auburn Merchandise Distributors, Inc. for approximately $28 million. The deal is expected to close next month.

"Auburn's history of putting the customer first with fast, flexible service resonates highly with our culture and business practices," said Scott McPherson, Senior Vice President of Core-Mark. "We are very impressed with the Auburn team and believe that this synergistic combination will result in continued great service with more marketing programs and products to help Auburn's customers grow their sales."

"We are very pleased to be joining the Core-Mark family and look forward to being part of a company with such a great reputation for customer service and a history of success. We believe that together with Core-Mark we will have a team very well suited to serve the Auburn customers," said Bill Potvin, President of Auburn Merchandise Distributors.

Auburn generates annual sales of approximately $260 million and is positioned to service a multi-state territory, complementing the Core-Mark distribution footprint in the Northeast marketplace.

Core-Mark is one of the largest broad-line, full-service wholesale distributors of packaged consumer products to the convenience retail industry in North America. Founded in 1888, Core-Mark provides distribution and logistics services as well as marketing programs to over 22,000 retail locations in 45 states and five Canadian provinces through 25 distribution centers, two of which Core-Mark operates as third party logistics providers. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry consumer packaged goods.