OMAHA - AMCON Distributing Company (NYSE American: DIT), a distributor of convenience and food service products, announced it has agreed to purchase Richmond Master Distributors, Inc., a South Bend, Indiana-based enterprise. The acquisition, which is set to be completed in AMCON's third fiscal quarter of 2024, is subject to standard closing conditions.
Christopher H. Atayan, Chairman and CEO of AMCON, expressed pride in the Carrico family's decision to entrust the continuity of their company to AMCON, a business with a history dating back to 1947. AMCON plans to maintain operations at Master Distributors' South Bend location and expects to expand its service reach to roughly 7,900 locations across 33 states.
Both companies are committed to customer service and industry leadership, which Andrew C. Plummer, AMCON's President and COO, cited as a solid base for future growth and support of their customer base. AMCON aims to enhance the value for Master Distributors' customers by offering its suite of customer-centered services.
Patrick Carrico, CEO of Master Distributors, highlighted the need for constant reinvention to meet customer expectations in a changing retail landscape. He believes AMCON's resources will better meet customer needs. Scott Carrico, COO of Master Distributors, also noted the benefits of AMCON's capacity, technology, and geographic reach for serving their growing customer base.
AMCON, along with its subsidiaries Team Sledd, LLC, and Henry’s Foods, Inc., operates across several states, offering a wide range of consumer products. Through its Healthy Edge Retail Group, AMCON also manages health and natural product retail stores in the Midwest and Florida.
This news is based on a press release statement.
InvestingPro Insights
As AMCON Distributing Company (NYSE American: DIT) prepares to expand its operations with the acquisition of Richmond Master Distributors, Inc., it's worth noting that the company has been able to maintain steady dividend payments for an impressive 17 consecutive years. This consistency is a testament to AMCON's financial stability and commitment to shareholder value, even as they pursue strategic growth opportunities.
InvestingPro data highlights that AMCON has managed to achieve a respectable revenue growth of 23.74% over the last twelve months as of Q1 2024. This growth is further solidified by the company's recent quarterly revenue growth of 16.33%, indicating a positive trajectory as it heads into the acquisition. Furthermore, AMCON's commitment to profitability is clear, with a gross profit of $179.18 million and a gross profit margin of 8.75% during the same period.
AMCON's current P/E Ratio (Adjusted) stands at 10.91, which, coupled with a Price / Book value of 1.14, suggests that the company is trading at a low revenue valuation multiple. This could indicate a potential investment opportunity for those looking to capitalize on the company's ongoing expansion and solid financial performance.
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