On March 21, 2011, MWI Veterinary Supply Co. (“MWI Co.”) purchased substantially all of the assets of Nelson Laboratories Limited Partnership (“Nelson”) for $7,000 in cash. Nelson is a distributor of animal health products to over 1,100 veterinary practices, primarily in the Midwestern United States. This acquisition allows us to better serve our customers in this region of the United States. An intangible asset representing customer relationships acquired in the acquisition has an estimated useful life of 10 years. The amount recorded in goodwill is expected to be deductible for tax purposes over 15 years.

On February 8, 2010, MWI Co. purchased all of the outstanding share capital of Centaur Services Limited (“Centaur”), based in the United Kingdom for an initial purchase price of $44,053, consisting of $42,053 in cash and $2,000 in a note payable which was paid on February 8, 2011. Subsequent to the acquisition of Centaur, we funded $2,047 to the pension plan of Centaur as required by the terms of the share purchase agreement. Centaur is a supplier of animal health products to veterinarians in the United Kingdom. Centaur distributes products to both the companion animal market and production animal market. The acquisition of Centaur has allowed us to expand into the international markets. We incurred $1,100 of direct acquisition-related expenses during fiscal year 2010. The intangible assets acquired in the acquisition have estimated useful lives between 1 and 20 years, which include customer relationships, trade names and other intangible assets. The amount recorded in goodwill will not be deductible for tax purposes.

The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition, which may be adjusted during the allocation period as defined in ASC 280. These purchase price allocations are based on a combination of valuations and analyses.

	2011		2010
Cash	$	-	$	674
Receivables		4,041		32,371
Inventories		3,594		17,830
Other current assets		-		480
Property and equipment		1,900		5,275
Goodwill		1,823		9,483
Intangibles		140		17,658
Total assets acquired		11,498		83,771

Accounts payable		4,498		25,811
Accrued expenses		-		5,299
Other liabilities		-		10,476
Total liabilities assumed		4,498		41,586

Net assets acquired	$	7,000	$	42,185

The following table presents supplemental pro forma information as if the acquisition of Centaur had occurred on October 1, 2009 for the nine months ended June 30, 2010 (unaudited):

	Unaudited Pro Forma Consolidated Results
		Nine months ended June 30, 2010
Revenues		$	955,011
Net Income		$	25,727

For the pro forma calculation, we used an average foreign currency exchange rate for the period presented and the annual net income as a percentage of revenues for purposes of determining the net income for interim periods. The unaudited pro forma consolidated results are not necessarily indicative of what our consolidated results of operations would have been had we completed the acquisition on October 1, 2009. Additionally, the unaudited pro forma consolidated results do not purport to project the future results of operations of the combined company.