Acquisitions

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

The following table presents the Company’s acquisitions since the start of 2021. The Company acquired 100% of the equity interests in each case. The Company has not provided pro forma results of operations for the transactions below, as the transactions individually and in the aggregate are not material to the Company. The results of operations for these transactions are included in the Company’s condensed consolidated statements of operations from the date of the acquisition (dollars in millions):

Date Acquired	Company Name	Region	Branches	Goodwill Recognized1		Intangible Assets Acquired1
June 1, 2022	Complete Supply, Inc.	Illinois	1	$	9.1	$	4.6
April 29, 2022	Wichita Falls Builders Wholesale, Inc.	Texas	1	$	0.2	$	0.5
January 1, 2022	Crabtree Siding and Supply	Tennessee	1	$	0.1	$	0.1
November 1, 2021	Midway Sales & Distributing, Inc.	Kansas, Missouri, Nebraska	10	$	28.8	$	38.5

1.Based on provisional estimates of the fair value of assets acquired and liabilities assumed as of June 30, 2022.

Prior to the acquisitions, the acquired companies listed above produced aggregate annual sales of approximately $145 million. The total transaction costs incurred by the Company for these acquisitions for the three and six months ended June 30, 2022 were $0.7 million and $1.2 million, respectively. Of the $38.2 million of goodwill recognized for these acquisitions, $38.0 million is deductible for tax purposes.

Lowry’s

In connection with the May 1, 2017 acquisition of Lowry’s Inc., the Company recorded an indemnity holdback liability, which was remeasured to fair value at each reporting period until the contingency was resolved. During the first quarter of 2022, the contingency was resolved and the Company released the indemnity holdback liability, resulting in a gain of $0.9 million, which is included as a component of and reduction to selling, general and administrative expense within the condensed consolidated statements of operations for the six months ended June 30, 2022.