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Business Acquisitions
 9 Months Ended
Sep. 28, 2013
Business Combinations [Abstract]  
Business Combination Disclosure Text Block

2. Business Acquisition

Bulgarian Processing Operation

 

On December 31, 2012, the Company acquired a grains handling and processing facility located in Silistra, Bulgaria and operated as the Organic Land Corporation OOD (“OLC”). The facility is located near a protected and chemical free agricultural area, which produces organic products including sunflower, flax seed, corn, barley and soybeans. This acquisition diversified the Company's organic sunflower processing operations and should allow it to expand its capabilities into the other organic products grown in the region following the expansion of production capabilities. The Company had been sourcing non-genetically modified sunflower kernel from OLC from late 2011 through to the date of acquisition. Since the acquisition date, the results of operations of OLC have been included in the International Foods Group.

 

This transaction has been accounted for as a business combination under the acquisition method of accounting. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed, as well as the total consideration transferred to effect the acquisition of OLC as of the acquisition date.

       $
Cash and cash equivalents    70
Accounts receivables    378
Inventories    55
Other current assets    21
Property, plant and equipment    4,067
Accounts payable and accrued liabilities    (228)
Long-term debt(1)    (465)
Total cash consideration    3,898

(1)       Subsequent to the acquisition date, the Company fully repaid OLC's existing bank loans.

 

The revenue and earnings of OLC from the date of acquisition to September 28, 2013 were not material to the Company's consolidated results of operations. In addition, assuming the acquisition had occurred as of January 1, 2012, the results of operations of OLC would not have had a material pro forma effect on the Company's revenues, earnings and earnings per share for the quarter and three quarters ended September 29, 2012.