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Business Acquisitions, Divestiture and Other Transaction
12 Months Ended
Dec. 28, 2013
Business Acquisitions, Divestiture And Other Transactions [Abstract]  
Business Acquisitions, Divestiture and Other Transaction

Note 9Business Acquisitions, Divestiture and Other Transaction

 

Acquisitions

 

The operating results of all acquisitions are reflected in our financial statements from their respective acquisition dates.

 

We completed certain acquisitions during the year ended December 28, 2013, which were immaterial to our financial statements individually and in the aggregate and resulted in the recording of approximately $14.7 million of initial goodwill through preliminary purchase price allocations. Total acquisition transaction costs incurred in the year ended December 28, 2013 were immaterial to our financial results.

 

We completed certain acquisitions during the year ended December 29, 2012, which were immaterial to our financial statements individually and in the aggregate and resulted in the recording of approximately $128.0 million of initial goodwill through preliminary purchase price allocations.

 

On December 31, 2010, we acquired 100% of the outstanding shares of Provet Holdings Limited (ASX: PVT), an Australasian distributor of veterinary products with sales in its 2010 fiscal year of approximately $278 million, for approximately $91 million, in a cash-for-stock exchange. As a result of the acquisition, we recorded $27.0 million of goodwill.

 

In addition to the Provet Holdings Limited acquisition, we completed other acquisitions during the year ended December 31, 2011, the operating results of which are reflected in our financial statements from their respective acquisition dates. These other acquisitions individually and in the aggregate had an immaterial impact on our reported operating results and resulted in the recording of approximately $38.8 million of initial goodwill through preliminary purchase price allocations.

 

Subsequent Acquisitions

 

On December 30, 2013, we completed the acquisition of an approximately 60% equity investment in BioHorizons, Inc., a U.S.-based manufacturer of advanced dental implants with annual revenues of approximately $115 million. Prior to completion of the acquisition, we funded BioHorizons, Inc. $145 million, which is recorded as a long-term loan included in Investments and Other within our consolidated balance sheet at December 28, 2013. This long-term loan was subsequently recorded as an intercompany loan upon completion of the acquisition and will be eliminated from our consolidated balance sheet in future reporting periods.

 

On January 6, 2014, we announced that we will acquire 100% ownership of five businesses in three European countries from Arseus NV. The businesses combine for annual sales of approximately $97 million and include a dental practice management software company in France and distributors of dental products in France, the Netherlands and Belgium. This transaction was completed during the first quarter of 2014.

Divestiture of an Equity Affiliate

 

On July 10, 2013, we divested our investment in a dental wholesale distributor in the Middle East that had primarily served as an importer that distributed products largely to other distributors. The divestiture resulted in a one-time loss, which is recorded in a separate line item, “Loss on sale of equity investment” within our consolidated statements of income and within the cash flows from operating activities section of our consolidated statements of cash flows, of $12.5 million, or $0.14 per diluted share, in the third quarter of 2013. Pursuant to the terms of this divestiture, we made cash payments, which are recorded in a separate line item, “Payments related to sale of equity investment”, within the cash flows from investing activities section of our consolidated statements of cash flows, to this distributor in the aggregate amount of $13.4 million, which it was required to use to reduce its debt, pay certain trade payables and provide working capital.  The investment in this distributor had been fully impaired as of the end of 2012.  There is no tax benefit related to the loss on this divestiture.

Loan and Investment Agreement

 

On December 12, 2008, we converted $10.4 million of loan receivables and related accrued interest into an equity interest of 15.33% in D4D Technologies, LLC (“D4D”).  Since that date, we have accounted for our equity interest in D4D under the equity method of accounting.

 

On August 3, 2009, we entered into an amendment whereby we paid certain of D4D's members approximately $8.0 million. Such payment is included in Investments and other in our consolidated financial statements and is being amortized over a period of 15 years.  On September 30, 2013, we purchased additional equity in D4D, increasing our ownership to 21.4%.