ACQUISITION

3 Months Ended

Jun. 30, 2023

On May 3, 2023, we purchased the assets of a cement import terminal in Stockton, California (the Stockton Terminal Acquisition), which was accounted for under the acquisition method. The purchase price of the Stockton Terminal Acquisition was approximately $55.1 million. The purchase price allocation has not yet been finalized. The purchase price was funded through borrowings under our revolving credit facility. Operations related to the Stockton Terminal Acquisition are included in the Cement business in our segment reporting from May 3, 2023 through June 30, 2023.

The following table summarizes the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed (based on Level 3 inputs) as of June 30, 2023:



	Estimated Fair Value
Inventory	$	14,809
Prepaid and Other Current Assets		179
Property, Plant, and Equipment		14,099
Lease Right-of-Use Assets		1,646
Intangible Assets		12,550
Lease Obligations		(1,646	)
Other Long-term Liabilities		(630	)
Goodwill		14,046
Total Estimated Purchase Price	$	55,053

The estimated useful lives assigned to Property, Plant, and Equipment range from 5 to 30 years, while the estimated useful lives assigned to Intangible Assets range from 2 to 15 years. All goodwill generated from the Stockton Terminal Acquisition is deductible for income tax purposes.

The following table presents the Revenue and Operating Loss related to the Stockton Terminal Acquisition that has been included in our Consolidated Statement of Earnings from May 3, 2023 through June 30, 2023.



	(dollars in thousands)
Revenue	$	6,468
Operating Loss	$	(1,920	)

Included in Operating Loss shown above is approximately $0.5 million and $2.8 million related to depreciation and amortization and the recording of acquired inventories at fair value, respectively.