AMCON Distributing Company Acquires Arrowrock Supply

Rhea-AI Summary

AMCON Distributing Company (NYSE American: DIT) has announced the acquisition of Arrowrock Supply from Davis-Jones Inc. in Boise, Idaho. The acquisition will strengthen AMCON's presence in the Intermountain West region, with operations continuing from Arrowrock's Boise distribution center.

Post-acquisition, AMCON will service approximately 8,000 locations from 14 distribution facilities across 34 states. The transaction is expected to close in AMCON's second quarter of fiscal 2025, subject to customary closing conditions. AMCON, along with its subsidiaries Team Sledd and Henry's Foods, distributes consumer products including beverages, candy, tobacco, groceries, and automotive supplies through facilities in multiple states.

Positive

• Expansion of geographic footprint in the Intermountain West region
• Increase in service capacity to 8,000 locations from 14 distribution facilities
• Extension of distribution network to 34 states
• Retention of existing Arrowrock distribution center in Boise

Negative

• None.

Insights

Financial Analyst

The acquisition of Arrowrock Supply represents a significant strategic expansion for AMCON Distributing in the Intermountain West region. The deal will increase AMCON's distribution network to 14 facilities serving approximately 8,000 locations across 34 states, marking substantial geographic growth. The Boise, Idaho distribution center adds a strategic foothold in a growing market. While financial terms weren't disclosed, this acquisition aligns with AMCON's expansion strategy in the convenience and foodservice distribution sector. The deal's expected closing in Q2 fiscal 2025 provides time for proper integration planning. For a company with a $90 million market cap, this acquisition could materially impact revenues and operational efficiency through increased scale and market presence.

Market Research Analyst

The convenience store and foodservice distribution market in the Intermountain West presents significant growth opportunities, making this acquisition particularly strategic. The region has seen increasing population growth and economic development, driving demand for convenience and foodservice products. Arrowrock's established presence in Boise provides AMCON immediate market access and an existing customer base, avoiding the costly and time-consuming process of building presence from scratch. The integration of Arrowrock's operations should strengthen AMCON's competitive position against larger national distributors and enhance its ability to serve multi-state operators efficiently.

OMAHA, Neb.--(BUSINESS WIRE)-- AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska-based consumer products company is pleased to announce the acquisition of Arrowrock Supply (“Arrowrock”) of Boise, Idaho from Davis-Jones Inc.

“We are delighted to welcome the loyal Employees, Customers, and Vendors of Arrowrock to our AMCON Family,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. “Our customer base in the Intermountain West of the United States is growing, and the addition of Arrowrock will enable AMCON to continue to provide a premium level of service across the region.”

AMCON will continue to serve Arrowrock customers from Arrowrock’s Boise, Idaho distribution center. Upon completion of this acquisition, AMCON will be servicing approximately 8,000 locations from 14 distribution facilities in 34 states.

The transaction is expected to close in the Company’s second quarter of fiscal 2025, subject to customary closing conditions.

AMCON, and its subsidiaries Team Sledd, LLC and Henry’s Foods, Inc., is a leading Convenience and Foodservice Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with distribution centers in Colorado, Idaho, Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee, and West Virginia. Through its Healthy Edge Retail Group, AMCON operates fifteen (15) health and natural product retail stores in the Midwest and Florida.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20241209544822/en/

Christopher H. Atayan

AMCON Distributing Company

Ph 402-331-3727

Source: AMCON Distributing Company

FAQ

When will AMCON Distributing Company (DIT) complete the Arrowrock Supply acquisition?

The acquisition is expected to close in AMCON's second quarter of fiscal 2025, subject to customary closing conditions.

How many locations will AMCON Distributing (DIT) service after acquiring Arrowrock Supply?

After the Arrowrock Supply acquisition, AMCON will service approximately 8,000 locations from 14 distribution facilities across 34 states.

Where is the Arrowrock Supply distribution center that AMCON (DIT) will operate?

AMCON will continue to operate Arrowrock Supply's distribution center in Boise, Idaho.

What is the geographic expansion benefit of AMCON's (DIT) Arrowrock acquisition?

The acquisition strengthens AMCON's presence in the Intermountain West region of the United States, enhancing their service capabilities in that area.