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Acquisition
 3 Months Ended
Mar. 31, 2014
Acquisition
4. Acquisition

In June 2013, our Kitchen & Bath Cabinetry business acquired 100% of the voting equity of Woodcrafters Home Products Holding, LLC (“WoodCrafters”), a manufacturer of bathroom vanities and tops for a purchase price of approximately $302 million. We paid the purchase price using a combination of cash on hand and borrowings under our existing credit facilities. This acquisition greatly expanded our offerings of bathroom cabinetry products. Net sales and operating income of WoodCrafters in the first quarter of 2014 were approximately $50 million and $5 million, respectively.

The following table summarizes the preliminary allocation of the purchase price to estimated fair values of assets acquired and liabilities assumed as of the date of the acquisition. This allocation may change after asset and liability valuations are finalized.

 

(In millions)  

Accounts receivable

    $ 41.4   

Inventories

      25.7   

Property, plant and equipment

      29.6   

Goodwill

      142.7   

Identifiable intangible assets

      89.4   

Other assets

      8.3   
  

 

 

  

Total assets

      337.1   

Other liabilities and accruals

      35.1   
  

 

 

  

Net assets acquired

    $ 302.0   

Goodwill primarily represents expected supply chain synergies. Identifiable intangible assets primarily consisted of customer relationships ($75.9 million) and technology ($9.6 million). The useful lives of these identifiable intangible assets are 18 years and 10 years, respectively.