Acquisition of Business

3 Months Ended

Mar. 29, 2025

Acquisition of Business

Acquisition of Business

(9) Acquisition of Business

In the first quarter of 2025, the Company acquired and opened the former Saylor’s Market store located in Newville, Pennsylvania. The completion of this acquisition expands the Company’s footprint in the Cumberland County region. The results of operations of the former Saylor’s Market store is included in the accompanying Consolidated Financial Statements from the date of acquisition. The former Saylor’s Market store contributed $2.9 million to sales in 2025. The cash purchase price paid was $7.5 million for the property, equipment, inventories, and goodwill related to this purchase. The Company accounted for this transaction as a business combination in accordance with the acquisition method. The fair value of property and equipment were determined based on external appraisals. Goodwill of $4.5 million was recorded, based upon the expected benefits to be derived from new management business strategy and cost synergies. The $4.5 million of goodwill is deductible for tax purposes. The purchase price has been allocated to the acquired assets as follows:

	Saylor's Markets Inc.
(dollars in thousands)	January 21, 2025
Inventories	$	150
Property and equipment		2,861
Goodwill		4,457
Total fair value of assets acquired	$	7,468