Business Acquisition

12 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Business Acquisition

Business Acquisition

On July 23, 2013, SIFCO Industries, Inc. completed the purchase of the forging business and substantially all related operating assets from MW General, Inc. (DBA General Aluminium Forgings). The forging business is operated in General Aluminum Forgings, LLC's ("Colorado Springs") Colorado Springs, Colorado facility, which is leased. The purchase price for the forging business and related operating assets and liabilities was approximately $4,400 payable in cash, which includes a purchase price adjustment of $123 received in the fourth quarter of fiscal 2013 related to certain adjustments principally to the final working capital level and/or indemnification holdback provisions under the purchase agreement. The Company recorded net sales of $1,100 and net operating loss of $216 from the date of acquisition through September 30, 2013.

The Colorado Springs purchase transaction is accounted for under the purchase method of accounting. The Company has completed the purchase accounting related to the Colorado Springs acquisition. The fair values of assets acquired and liabilities assumed, were based upon appraisals, other studies and additional information available at the time of the acquisition of Colorado Springs. The Company believes that such information provided a reasonable basis for determining the fair values of the assets acquired and liabilities assumed. To the extent the purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired and assumed, such excess was allocated to goodwill. The following table summarizes the Company's purchase price allocation of the estimated fair values of the assets acquired and liabilities assumed:

	July 23, 2013
Assets acquired:
Accounts receivable	$	645
Inventory	1,173
Property and equipment	1,369
Intangible assets	1,100
Goodwill	643
Other	27
	4,957
Liabilities assumed:
Accounts payable and accrued liabilities	570
Total purchase price	$	4,387

On October 28, 2011, through its wholly-owned subsidiary, Forge Acquisition, LLC – now known as Quality Aluminum Forgings, LLC and referred to herein as "Orange." The Company completed the purchase of the forging business and substantially all related operating assets from GEL Industries, Inc. (DBA Quality Aluminum Forge, Inc.). The forging business is operated in Orange’s Orange and Long Beach, California facilities, all of which are leased. The purchase price for the forging business and related operating assets was approximately $24,900 payable in cash, which includes a purchase price adjustment of $165 paid in the third quarter of fiscal 2012 for certain adjustments related principally to the final working capital level and/or indemnification holdback provisions under the purchase agreement. In addition, the Company has assumed certain current operating liabilities of the forging business. The Company recorded net sales of $19,200 and net operating income of $1,427 from the date of acquisition through September 30, 2012. The Orange purchase transaction was accounted for under the purchase method of accounting.

The results of operations of Colorado Springs and Orange from their respective dates of acquisition are included in the Company’s consolidated statements of operations. The following unaudited pro forma information presents a summary of the results of operations for the Company including Colorado Springs and Orange as if the acquisitions had occurred on October 1, 2012 and 2011, respectively:

	Years Ended September 30,
	2013		2012
Net sales	$	120,439	$	109,560
Net income	10,349		6,528
Net income per share (basic)	1.93		1.23
Net income per share (diluted)	1.92		1.21