Business Acquisition

12 Months Ended

Sep. 30, 2012

Business Acquisition [Abstract]

Business Acquisition

12. Business Acquisition

On October 28, 2011, through its wholly-owned subsidiary, Forge Acquisition, LLC – now known as QAF, 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 QAF’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 $24.9 million payable in cash, after 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 $19.2 million from the date of acquisition through September 30, 2012.

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

	October 28, 2011
Assets acquired:
Accounts receivable	$	3,703
Inventory		3,961
Property and equipment		4,965
Intangible assets		9,000
Goodwill		3,522
Other		153
		25,304
Liabilities assumed:
Accounts payable and accrued liabilities		418
Total purchase price	$	24,886

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

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 lease arrangement, with an option to purchase the facility at a nominal price. The TWF purchase transaction is accounted for under the purchase method of accounting. The Company recorded net sales of $18.7 million from the date of acquisition through September 30, 2012.

The results of operation of QAF and TWF from their respective dates of acquisition are included in the Company’s consolidated statements of operations 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 QAF and TWF as if the acquisitions had occurred on October 1, 2010 and 2009, respectively:

	Years Ended September 30,
	2012		2011
Net sales	$	126,619	$	129,757
Net income		7,533		9,915
Net income per share (basic)		1.42		1.88
Net income per share (diluted)		1.40		1.86