Business Acquisition

6 Months Ended

Jun. 30, 2011

Business Acquisition

Business Acquisition

11.   Pursuant to a Stock Purchase Agreement among the Company and the owners of Kay Concrete Materials Co. ("Kay Concrete"), on April 15, 2011 the Company acquired all of the issued and outstanding shares of common stock of Kay Concrete, a ready-mix concrete company located in southwest Missouri. The purpose of the acquisition was to expand our ready-mixed concrete business in the region. The aggregate consideration paid by the Company at closing was approximately $5.0 million consisting of $1.4 million cash, 105,750 shares of the Company's capital stock valued at $2.7 million based on the April 15, 2011 price per share of $26.00, and a note payable of $0.9 million.   In accordance with Accounting Standards Codification ("ASC") 805, the Company determined the assets and liabilities acquired constituted a business and applied purchase accounting to the assets acquired and the liabilities assumed. Since Kay Concrete is not a substantial subsidiary, pro forma information is not provided for the combined entity. The following table summarizes the consideration paid for acquisition of the assets acquired and the liabilities assumed at the acquisition date as well as the fair value at the acquisition date:

Consideration:
Cash paid, gross			$	1,360,000
Fair value of Monarch stock given
105,750 shares at $26.00 per share				2,749,500
Note payable				927,443
			$	5,036,943
Fair Value of assets acquired and liabilities assumed:
	Assets
		Cash	$	825,608
		Accounts receivable		363,246
		Inventories		288,620
		Property, plant and equipment		5,255,986
		Goodwill/non-compete		1,565,443
		Other assets		180,712
	Liabilities
		Accounts payable		(120,735	)
		Short-term debt		(175,000	)
		Accrued liabilities		(56,937	)
		Long-term debt		(1,255,000	)
		Deferred taxes		(1,835,000	)
	Total:		$	5,036,943