Business Acquisition

12 Months Ended

Sep. 30, 2011

Business Acquisition [Abstract]

Business Acquisition

13. Business Acquisition

On December 10, 2010, through its wholly-owned subsidiary, TWF Acquisition, LLC – now known as T&W Forge, LLC ("TWF"), the Company completed the purchase of the forging business and substantially all related operating assets from T&W Forge, Inc. ("T&W Forge"). TWF operates in T&W Forge's Alliance, Ohio facility under a long-term, below market lease arrangement, with an option to purchase the facility at a nominal price. TWF engages in the production and sale of certain metal products and services produced primarily to the specific design requirements of its customers. The products include various forged components used principally in the power generation market. The purchase price for the business and related assets of T&W Forge was approximately $22.6 million, after certain adjustments related principally to the final working capital level. In addition, TWF assumed certain current operating liabilities of T&W Forge.

The purchase transaction is accounted for under the purchase method of accounting. The allocation of the purchase price including amounts attributed to goodwill and intangible assets, all of which belong to the Forge Group, are as follows:

	December 10, 2010
Assets acquired:
Accounts receivable	$	1,278
Inventory		2,835
Property and equipment		6,222
Intangible assets		10,423
Goodwill		3,493
Other		118
		24,369
Liabilities assumed:
Accounts payable and accrued liabilities		1,803
Total purchase price	$	22,566

The above fair values of assets acquired and liabilities assumed, as initially reported, were based upon appraisals, other studies and additional information. The Company believes that such information provided a reasonable basis for determining the fair values of the assets acquired and liabilities assumed.

The results of operation of TWF from the date of acquisition are included in the Company's consolidated statements of operation and are reported in the Forge Group. The following unaudited pro forma information presents a summary of the results of operations for the Company including TWF as if the acquisition had occurred on October 1, 2009:

	Years Ended September 30,
	2011		2010
Net sales	$	110,531	$	99,619
Net income		8,769		6,072
Net income per share (basic)		1.66		1.15
Net income per share (diluted)		1.65		1.14