Business Acquisition

12 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Business Acquisition

Business Acquisition

On July 1, 2015, the Company completed the acquisition of all of the outstanding equity of Maniago. This acquisition resulted in a major milestone for the Company to bring SIFCO back to being a multi-national A&E company that has locations near its worldwide customer base. Maniago's forging and machining capabilities and European location will help serve the energy market with high quality, cost effective solutions for their growing businesses. The forging business is operated at two facilities, located in Maniago, Italy. The purchase price for the forging business, net of the assumed debt was approximately $16,719, after a $275 purchase price adjustment received and recorded in the first quarter of fiscal 2016 for adjustments principally related to the final working capital level and indebtedness adjustment. In addition, the Company has assumed certain current operating liabilities and indebtedness of the forging business. The Company recorded net sales of $6,000 and net operating income of $209 from the date of acquisition through September 30, 2015.

The Maniago purchase transaction is accounted for under the purchase method of accounting. The Company completed the purchase accounting related to the Maniago 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 Maniago (level 3 inputs). 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 1, 2015		Purchase price adjustments			Final purchase price
Assets acquired:
Accounts receivable	$	6,740	$	25		$	6,765
Inventory	6,477		83			6,560
Prepaid & other current assets	1,999		(9		)	1,990
Property and equipment	16,923		—			16,923
Intangible assets	3,991		443			4,434
Goodwill	8,760		(619		)	8,141
	44,890		(77		)	44,813
Liabilities assumed:
Current maturities of long-term debt	7,920		—			7,920
Accounts payable and accrued liabilities	8,279		59			8,338
Long-term debt	6,437		—			6,437
Other long-term liabilities	5,260		139			5,399
Total purchase price	$	16,994	$	(275	)	$	16,719

As part of the acquisition of Maniago, the Company incurred transaction related costs which were expensed as incurred. Such costs related to legal and professional expenses and other expenses that are included in the consolidated statements of operations within selling, general and administrative expenses of approximately $2,681 in fiscal 2015.

The results of operations of Maniago from its respective date 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 Maniago as if the acquisitions had occurred on October 1, 2014:

	(Unaudited) Years Ended September 30,
	2015
Net sales	$	130,401
Net loss	$	(2,772	)
Net loss per share (basic)	$	(0.51	)
Net loss per share (diluted)	$	(0.51	)