Business Combinations

12 Months Ended

Dec. 31, 2016

Business Combinations

Business Combination

17. Business Combinations

On February 1, 2016, the Company acquired the assets of Vogel Capital, Inc., d/b/a Diamond Machining Technology (DMT) for $7.0 million in cash. DMT products are leaders in sharpening tools for knives, scissors, chisels, and other cutting tools. The DMT products use finely dispersed diamonds on the surfaces of sharpeners. The acquired assets include over 50 patents and trademarks.

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

Assets:
Accounts Receivable	$	1,145
Inventory		280
Equipment		262
Prepaid expenses		176
Intangible Assets		5,481
Total assets	$	7,344

Liabilities
Accounts Payable	$	192
Accrued Expense		181
Total liabilities	$	373

Net sales from the date of acquisition through December 31, 2016 attributable to DMT products were approximately $5.6 million. Net income from the date of acquisition through December 31, 2016 attributable to DMT products was approximately $800,000.

Assuming DMT was acquired on January 1, 2016, unaudited proforma combined net sales for the twelve months ended December 31, 2016 for the Company would have been approximately $125.2 million. Unaudited proforma combined net income for the twelve months ended December 31, 2016 for the Company would have been approximately $5.9 million.

Assuming DMT was acquired on January 1, 2015, unaudited proforma combined net sales for the twelve months ended December 31, 2015, for the Company would have been approximately $115.3 million. Unaudited proforma combined net income for the twelve months ended December 31, 2015 for the Company would have been approximately $5.3 million.