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Acquisitions
12 Months Ended
Sep. 30, 2014
Acquisitions.  
Acquisitions

 

3. Acquisitions

        During the year ended September 30, 2014, the Company made seven acquisitions of businesses. On October 16, 2013, the Company acquired certain operating assets of TCCD International, Inc. On November 25, 2013, the Company acquired certain operating assets of Green Luxury Brands, Inc. On December 19, 2013, the Company acquired certain operating assets of Twinlab Corporation. On January 15, 2014, the Company acquired certain operating assets of Peachtree Natural Foods, Inc. On April 11, 2014, the Company acquired certain operating assets of Northwest Health Foods, Inc. On April 17, 2014, the Company acquired certain operating assets of Bio-Genesis Nutraceuticals, Inc. On August 26, 2014, the Company acquired certain operating assets of Cooper Nutrition, Inc. The aggregate purchase price of these acquisitions was $16,377 in cash.

        During the year ended September 30, 2013, the Company made four acquisitions of businesses. On April 1, 2013, the Company acquired certain operating assets of Tri Medica International, Inc. On May 17, 2013, the Company acquired certain operating assets of LC Nutrition and Vitamin House. On August 7, 2013, the Company acquired certain operating assets of Simplers Botanical Company, LLC. On August 21, 2013, the Company acquired certain operating assets of Jordan Naturals Company, Inc. The aggregate purchase price of these acquisitions was $3,382 in cash.

        During the year ended September 30, 2012, the Company made six acquisitions of businesses. On October 27, 2011, the Company acquired certain operating assets of Mia Rose Products, Inc. On November 22, 2011, the Company acquired certain operating assets of Collective Wellbeing, LLC. On January 16, 2012, the Company acquired certain operating assets of Nature's Discount, Inc. and Top Health. On January 27, 2012, the Company acquired certain operating assets of Your Crown and Glory, LLC. On March 2, 2012, the Company acquired certain operating assets of Treehouse Vitamins, LLC. On June 7, 2012, the Company acquired certain operating assets of Direct Access Network, Inc. The aggregate purchase price of these acquisitions was $12,248 in cash.

        These acquisitions are in keeping with the Company's business strategy of consolidating the fragmented industry where it competes. These acquisitions were accounted for using the acquisition method of accounting. Accordingly, the aggregate purchase price was assigned to the assets acquired based on their fair values at the respective dates of acquisition. The excess of aggregate purchase price over the fair values of the assets acquired was classified as goodwill (Note 7). The goodwill relates to expected synergies from these acquisitions. The Consolidated Statements of Operations and Comprehensive Income and Consolidated Statements of Cash Flows presented herein include the activities of these acquired businesses from their respective dates of acquisition.

        The following reflects the final allocation of the aggregate purchase prices for the fiscal 2014, 2013 and 2012 acquisitions to the aggregate assets acquired:

                                                                                                                                                                                    

 

 

Fiscal 2014
Acquisitions

 

Fiscal 2013
Acquisitions

 

Fiscal 2012
Acquisitions

 

Aggregate assets acquired:

 

 

 

 

 

 

 

 

 

 

Current assets

 

$

2,773 

 

$

794 

 

$

3,213 

 

Property, plant and equipment

 

 

 

 

 

 

178 

 

Goodwill

 

 

7,801 

 

 

1,069 

 

 

5,899 

 

Intangible assets

 

 

5,803 

 

 

1,519 

 

 

2,958 

 

 

 

 

 

 

 

 

 

 

 

$

16,377 

 

$

3,382 

 

$

12,248 

 

 

 

 

 

 

 

 

 

        The fiscal 2014, 2013 and 2012 acquired intangible assets totaling $5,803, $1,519 and $2,958, respectively, related to trademarks, tradenames, customer relationships and non-compete agreements, and are being amortized over periods of two to fifteen years for financial statement purposes. The fiscal 2014, 2013 and 2012 acquired intangible assets are expected to be deductible for tax purposes over fifteen years. Goodwill, which is not subject to amortization for financial statement purposes, of $7,801 for fiscal 2014, $1,069 for fiscal 2013 and $5,899 for fiscal 2012, is expected to be deductible for tax purposes over fifteen years.