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Note 13

3 Months Ended

Dec. 28, 2019

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note 13

On October 1, 2019, we acquired the assets of ICEE Distributors LLC, based in Bossier City, Louisiana. ICEE Distributors does business in Arkansas, Louisiana and Texas with annual sales of approximately $13 million. Sales and operating income of ICEE Distributors were approximately $2.5 million and $500,000 for the three months ended December 28, 2019.

The preliminary purchase price allocation for the acquisition is as follows:

		(in thousands)

Accounts Receivable, net		$	722
Inventories			866
Property, plant & equipment, net			4,851
Customer Relationships			569
Distribution rights			21,200
Goodwill			16,973
Accounts Payable			(210	)
Purchase Price		$	44,970

The goodwill recognized is attributable to the assembled workforce of ICEE Distributors and certain other strategic intangible assets that do not meet the requirements for recognition separate and apart from goodwill.

Acquisition costs of $36,000 are included in other general expense for the three months ended December 28, 2019.

Our unaudited proforma results, giving effect to this acquisition and assuming an acquisition date of September 29, 2018, would have been:

		(in thousands)

		Three months ended
		December 28,				December 29,
		2019				2018

Net Sales		$	282,897			$	273,857

Net Earnings		$	17,059			$	17,510