Acquisitions

9 Months Ended

Sep. 30, 2019

During second quarter 2019, our wholly owned subsidiary, Boise Cascade Building Materials Distribution, L.L.C., completed the acquisition of a wholesale building material distribution location in Birmingham, Alabama (the "Acquisition"). The purchase price of the Acquisition was $15.7 million, including a post-closing adjustment of less than $0.1 million based upon working capital target. We funded the Acquisition with cash on hand. The distribution location adds to our existing distribution business and strengthens our nationwide presence. In addition, we believe we will be able to broaden our product and service offerings within this market following the Acquisition.

Goodwill represents the excess of the purchase price and related costs over the fair value of the net tangible and intangible assets of businesses acquired. The goodwill and customer relationships recognized from the Acquisition are deductible for U.S. income tax purposes. The useful life for customer relationships is 10 years. All of the goodwill and intangible assets were assigned to the Building Materials Distribution segment.

The following table summarizes the allocations of the purchase price to the assets acquired and liabilities assumed, based on our estimates of the fair value at the acquisition date:



	Acquisition Date Fair Value
	(thousands)
Accounts receivable	$	5,563
Inventories	3,395
Other assets	8
Property and equipment	3,487
Lease right-of-use assets	359
Intangible assets:
Customer relationships	2,100
Goodwill	1,223
Assets acquired	16,135

Accounts payable	100
Lease liabilities	359
Liabilities assumed	459

Net assets acquired	$	15,676