Amcon Distributing to acquire Burklund

Dive Brief:

Amcon Distributing Company has agreed to acquire fellow distributor Burklund for an undisclosed amount, according to a Friday press release.
Through this acquisition, Amcon will gain Berklund’s distribution centers in East Peoria — a city which also houses Berklund’s headquarters — and Fairview Heights, Illinois, as well as the company’s slate of customers.
The combination of these two companies will result in a distribution firm that services around 7,400 locations in 32 states.

Dive Insight:

In a field that includes heavyweights like Core-Mark, which has 45 North American distribution centers and serves more than 50,000 retail locations, the combined Amcon and Burklund companies will gain valuable scale to help them compete.

“Jon Burklund and Rob Hackett’s unwavering commitment and dedication to customer service is a common operating philosophy shared by both AMCON and Burklund and serves as a strong foundation to grow and support our customer base,” said Andrew C. Plummer, Amcon’s president and COO.

The acquisition is expected to close in Amcon’s third quarter of this year, subject to customary closing conditions.

Amcon has distribution centers in nine states: Colorado, Illinois, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia.

“We now have the enhanced capacity, technology, geographic reach and foodservice facilities to serve our customers as they grow,” said Jon Burklund, chairman of Burklund.

Christopher H. Atayan, Amcon’s chairman and CEO, also noted that the company was welcoming “all the Burklund associates” to Amcon.

This is Amcon’s second acquisition so far in 2024. The first was a deal for a 250,000-square-foot distribution facility in Colorado City, Colorado.

Amcon distributes a wide variety of convenience and foodservice goods, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products. It also operates 15 health and natural product retail stores in the Midwest and Florida.