AMCON Distributing Company Announces Expansion Into the Southeast
May 31 2011 - 6:30AM
Business Wire
AMCON Distributing Company (“AMCON”) (NYSE AMEX:DIT), an Omaha,
Nebraska based consumer products company is pleased to announce
that it will significantly increase its distribution presence in
the Southeast region of the United States with the acquisition of
substantially all of the operating assets of L.P. Shanks Company,
Inc. (“L.P. Shanks”).
Christopher H. Atayan, AMCON’s Chairman and Chief Executive
Officer commented, “This acquisition will substantially expand our
presence in Tennessee, Kentucky, Georgia, Virginia, West Virginia,
and North Carolina. We have been carefully studying this region for
several years. In the process of conducting our market research, we
found that the strategy espoused by the management team at L.P.
Shanks closely mirrored our strategy of providing high levels of
customer service and developing long-term customer relationships.
L.P. Shanks was founded in 1916 and has an excellent reputation in
the industry. With this acquisition we welcome over 700 new
customers into the AMCON family and look forward to offering them
our expanded product and program offerings, enhancing their ability
to maximize profits. We have tremendous respect for Scot Shanks and
look forward to working with him on strategic initiatives as we
continue to grow our enterprise.”
This acquisition will add a full service wholesale branch in
Crossville, Tennessee and supplemental branches in Bristol and
Murfreesboro, Tennessee. L.P. Shanks’ convenience channel sales
were approximately $200 million in its fiscal 2011 ended March 31,
2011. This acquisition will be funded primarily by AMCON’s expanded
credit facility with its existing bank group.
AMCON is a leading wholesale distributor of consumer products,
including beverages, candy, tobacco, groceries, foodservice, frozen
and chilled foods, and health and beauty care products with
locations in Arkansas, Illinois, Missouri, Nebraska, North Dakota,
South Dakota and Tennessee. AMCON also operates fourteen (14)
health and natural product retail stores in the Midwest and
Florida. The retail stores operate under the names Chamberlin's
Market & Cafe www.chamberlins.com and Akin’s Natural Foods
Market www.akins.com
This news release contains forward-looking statements that are
subject to risks and uncertainties and which reflect management's
current beliefs and estimates of future economic circumstances,
industry conditions, Company performance and financial results. A
number of factors could affect the future results of the Company
and could cause those results to differ materially from those
expressed in the Company's forward-looking statements including,
without limitation, availability of sufficient cash resources to
conduct its business and meet its capital expenditures needs and
the other factors described under Item 1.A. of the Company’s Annual
Report on Form 10-K. Moreover, past financial performance should
not be considered a reliable indicator of future performance.
Accordingly, the Company claims the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 with respect to all such
forward-looking statements.
Visit AMCON Distributing Company's web site
at: www.amcon.com
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