Acquisitions

During the year ended September 30, 2016, the Company made two acquisitions of businesses. On October 6, 2015, the Company acquired certain operating assets of Dynamic Health Laboratories, Inc. ("Dynamic Health"). On February 18, 2016, the Company acquired certain operating assets of Aubrey Organics, Inc. ("Aubrey Organics"). The aggregate purchase price of these acquisitions was $26,235 in cash.

During the year ended September 30, 2015, the Company made two acquisitions of businesses. On November 18, 2014, the Company acquired certain operating assets of Agape Health Products. On June 4, 2015, the Company acquired certain operating assets of ProClay, LLC. The aggregate purchase price of these acquisitions was $1,266 in cash.

During the year ended September 30, 2014, the Company made seven acquisitions of businesses. On October 16, 2013, the Company acquired certain operating assets of TCCD International, Inc. On November 25, 2013, the Company acquired certain operating assets of Green Luxury Brands, Inc. On December 19, 2013, the Company acquired certain operating assets of Twinlab Corporation. On January 15, 2014, the Company acquired certain operating assets of Peachtree Natural Foods, Inc. On April 11, 2014, the Company acquired certain operating assets of Northwest Health Foods, Inc. On April 17, 2014, the Company acquired certain operating assets of Bio-Genesis Nutraceuticals, Inc. On August 26, 2014, the Company acquired certain operating assets of Cooper Nutrition, Inc. The aggregate purchase price of these acquisitions was $16,377 in cash.

These acquisitions are in keeping with the Company's business strategy of consolidating the fragmented industry where it competes. These acquisitions were accounted for using the acquisition method of accounting. Accordingly, the aggregate purchase price was assigned to the assets acquired based on their fair values at the respective dates of acquisition. The excess of aggregate purchase price over the fair values of the assets acquired was classified as goodwill (Note 7). The goodwill relates to expected synergies from these acquisitions. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows presented herein include the activities of these acquired businesses from their respective dates of acquisition. The following reflects the final allocation of the aggregate purchase prices for the fiscal 2016, 2015 and 2014 acquisitions to the aggregate assets acquired:



	Fiscal 2016 Acquisition - Dynamic Health		Fiscal 2016 Acquisition - Aubrey Organics		Fiscal 2015 Acquisitions		Fiscal 2014 Acquisitions
Aggregate assets acquired:
Current assets	$	3,821	$	755	$	111	$	2,773
Property, plant and equipment	644		6,004		—		—
Goodwill	6,541		—		762		7,801
Intangible assets	8,020		450		393		5,803
	$	19,026	$	7,209	$	1,266	$	16,377

The fiscal 2016, 2015 and 2014 acquired intangible assets totaling $8,470, $393 and $5,803, respectively, related to trademarks, tradenames and customer relationships, and are being amortized over periods of two to fifteen years for financial statement purposes. The fiscal 2016, 2015 and 2014 acquired intangible assets are expected to be deductible for tax purposes over fifteen years. Goodwill, which is not subject to amortization for financial statement purposes, of $6,541 for fiscal 2016, $762 for fiscal 2015 and $7,801 for fiscal 2014, is expected to be deductible for tax purposes over fifteen years.

Since the date of acquisition (October 6, 2015), net sales of $17,393 and gross profit of $6,802 for Dynamic Health were included in the Consolidated Statements of Comprehensive Income for the year ended September 30, 2016. The Company tracks selling, general and administrative expenses on a consolidated basis, not on a brand-by-brand basis. As a result, the disclosure of any results after gross profit is impracticable. The following table provides unaudited pro forma information for the year ended September 30, 2015 as if the acquisition of Dynamic Health had been completed on October 1, 2014. Pro forma information was not provided for the year ended September 30, 2016 since the acquisition was completed near the beginning of the year and the pro forma results are not materially different than actual results. The information has been provided for illustrative purposes only and is not necessarily indicative of the actual results that would have been achieved by the Company for the period presented or that will be achieved in the future. The pro forma information has been adjusted to give effect to items directly attributable to the Dynamic Health acquisition. These adjustments include acquisition costs, amortization expense associated with acquired intangible assets, interest expense associated with borrowings on the Company's revolving credit facility to fund the acquisition, application of the Company's depreciable lives policy for property, plant and equipment, elimination of intercompany transactions and any consequential tax effects.



	For the Year Ended September 30, 2015 (unaudited)
Net sales	$	233,440
Net income	$	15,117

This information has not been adjusted to reflect any changes in the operations of the business subsequent to acquisition. Changes in the operations of the acquired business may include, but are not limited to, discontinuation of certain customers and/or products, application of the Company's pricing and credit policies, integration of systems and personnel, changes in manufacturing processes, relocation of facilities, potential cost synergies and changes in marketing and sales programs. Due to these changes, future results could be materially different than the pro forma information provided.

The actual and pro forma net sales and earnings related to the Aubrey Organics acquisition were not material.