McLane Company Acquires C-Store Distributing Company From Marsh Supermarkets

TEMPLE, Texas - McLane Company Inc., a Temple, Texas-based grocery and food distributor, and Marsh Supermarkets Inc, a leading regional grocery chain, announced on Friday the completion of McLane Company's acquisition of the assets of
Convenience Store Distributing Company (CSDC), including the company's Richmond, Indiana distribution center. CSDC, a wholly-owned subsidiary of Marsh Supermarkets, is a wholesale grocery distribution company. Terms of the sale were not disclosed.

"The strategic location of CSDC's warehouse facility will allow McLane Company to better serve its existing customer base," according to W. Grady Rosier, CEO of McLane Company. The company will provide distribution services to Marsh's Village Pantry Division and continue providing service to CSDC's current customers. CSDC currently services 960 stores in a seven-state area. The CSDC business, with sales of approximately $400 million, will now operate as McLane Indiana. Mike Grace, who was the operations leader of CSDC, will serve as vice president of distribution for McLane Indiana and will oversee the day-to-day operations of the business. Essentially all of CSDC's employees are expected to join McLane Company.

"McLane Company has long competed with CSDC and has always greatly respected the quality of their commitment to the customer, the quality of their customer base, the leadership of Ted Varner (president of CSDC) and his management team, and the execution of the employees throughout the organization," said Terry McElroy, president of McLane Grocery Distribution. "During the process of due diligence, we have affirmed those beliefs and also gained tremendous respect for the Marsh Supermarkets and Village Pantry organizations. We recognize and readily accept the responsibility we inherit for continuing the reputation of CSDC and the obligations to the customers and employees of that company."

"I'm pleased that so little time has been required to work out all the fine points of our agreement," said Don E. Marsh, chairman, president and CEO of Marsh Supermarkets Inc. "It says much about the spirit of cooperation between our two companies and we look forward to a mutually rewarding relationship with McLane Company."
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