v2.4.0.8
Business Acquisitions
 9 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
Business Combinations
Business Acquisitions

There were no business acquisitions completed through the third quarter of 2014. See Note 15. Subsequent Events for acquisitions completed in October 2014.

Prior Years Business Acquisitions

On December 9, 2013, the Turf and Specialty Group completed the purchase of substantially all of the assets of Cycle Group, Inc. for a purchase price of $4.2 million. The operation consists of a modern granulated products facility in Mocksville, North Carolina.

The summarized final purchase price allocation is as follows:
(in thousands)
 
Inventory
$
77

Intangible assets
330

Property, plant and equipment
3,825

Total purchase price
$
4,232



Details of the intangible assets acquired are as follows:
(in thousands)
Fair
Value
 
Useful
Life
Customer relationships
$
150

 
5 years
Noncompete agreement
55

 
7 years
Patents
125

 
5 years
Total identifiable intangible assets
$
330

 
5 years *
*weighted average number of years

On August 5, 2013, the Company completed the purchase of substantially all of the assets of Mile Rail, LLC and a sister entity for a purchase price of $7.8 million. The operations consist of a railcar repair and cleaning facility headquartered in Kansas City, Missouri, with 2 satellite locations in Nebraska and Indiana.
The summarized final purchase price allocation is as follows:
(in thousands)
 
Inventory
$
512

Other assets
14

Intangible assets
650

Goodwill
4,167

Property, plant and equipment
2,605

Other liabilities
(144
)
Total purchase price
$
7,804


The goodwill recognized as a result of the Mile Rail acquisition is $4.2 million, which is fully deductible for tax purposes, and is included in the Rail segment. The goodwill relates to geography that is complimentary to the Rail Group's existing repair network and from its additional connections to several U.S. Class I railroads, from which the Company anticipates future growth and capacity to generate gross profit.
Details of the intangible assets acquired are as follows:
 
(in thousands)
Fair
Value
 
Useful
Life
Customer relationships
$
400

 
5 years
Noncompete agreement
250

 
5 years
Total identifiable intangible assets
$
650

 
5 years *

*weighted average number of years

On December 3, 2012, the Company completed the purchase of a majority of the grain and agronomy assets of Green Plains Grain Company ("GPG"), a subsidiary of Green Plains Renewable Energy, Inc. for a purchase price of $120.2 million, which included a $3.3 million payable to the acquiree that was outstanding as of December 31, 2012 and paid in January 2013. The various facilities located in Iowa and Tennessee have a combined grain storage capacity of more than 32.0 million bushels and 12,000 tons of nutrient storage.
During the first quarter of 2013, the purchase price allocation for Green Plains Grain Company, which was acquired in the fourth quarter of 2012, was finalized. The measurement period adjustments to the purchase price allocation were the result of additional information obtained since the filing of the Form 10-K for the year ended December 31, 2012.
The summarized final purchase price allocation is as follows:
(in thousands)
 
Accounts receivable
$
19,174

Inventory
121,983

Property, plant and equipment
57,828

Intangible assets
4,600

Goodwill
33,175

Commodity derivatives
4,701

Other assets
1,775

Accounts payable
(91,001
)
Debt assumed
(29,632
)
Other liabilities and noncontrolling interests
(2,371
)
Total purchase price
$
120,232



The goodwill recognized as a result of the GPG acquisition is $33.2 million, for which the full amount is deductible for tax purposes, and is included in the Grain reportable segment. The goodwill relates to the value of a fully functional business consisting of a successful management team and an experienced and talented work force.
Details of the intangible assets acquired are as follows:
 
(in thousands)
Fair
Value
 
Useful
Life
Supplier relationships
$
4,600

 
3 to 5 years
Total identifiable intangible assets
$
4,600

 
4 years *
*weighted average number of years