© Reuters.
By Dhirendra Tripathi
Investing.com – Core-Mark (NASDAQ:) shares hit their year’s high Tuesday as the company agreed to Performance Food’s (NYSE:) stock and cash offer that values it at $2.5 billion.
The deal will boost earnings per share from the first full fiscal year following closing of the transaction, which is likely to happen by June 2022. Annual cost savings of approximately $40 million by the third full year after closing the transaction are also expected.
The transaction will add approximately $17 billion to PFG’s net sales, resulting in total pro-forma annual net sales of approximately $44 billion.
Performance Food shares fell more than 6%.
PFG expects to fund the cash portion of the transaction consideration with borrowing from its asset-based revolving credit facility and the issuance of new senior unsecured notes.
Core-Mark shareholders will receive $23.87 per share in cash and 0.44 PFG shares for each Core-Mark share. They will own around 13% of the combined entity.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
