Business Combination

12 Months Ended

Dec. 31, 2013

Business Combination

Business Combination

17. Business Combinations

On June 7, 2012, the Company purchased certain assets of The C-Thru Ruler Company, a leading supplier of drafting, measuring, lettering and stencil products. The Company purchased inventory and intellectual property related to C-Thru’s lettering and ruler business for approximately $1.47 million using funds borrowed under its revolving loan agreement with HSBC. The Company recorded approximately $0.42 million for inventory, as well as approximately $1.05 million for intangible assets, consisting of customer relationships.

The purchase price was allocated to assets acquired and liabilities assumed as follows (in thousands):

Assets:
Inventory		423
Intangible Assets		1,050
Total assets	$	1,473

Net sales from the date of acquisition through December 31, 2012, attributable to C-Thru were approximately $1.7 million.

Assuming C-Thru was acquired on January 1, 2012, unaudited proforma net sales for the year ended December 31, 2012 attributable to C-Thru were approximately $3.2 million.

Unaudited net income for the year ended December 31, 2012 attributable to C-Thru was not material to the Company’s financial statements for that period.