Business Acquisition

12 Months Ended

Sep. 30, 2011

Business Combinations [Abstract]

Business Combination Disclosure Text Block

3.Business Acquisitions

On February 8, 2010, MWI Veterinary Supply Co. (“MWI Co.”) purchased all of the outstanding share capital of Centaur Services Limited (“Centaur”), based in the United Kingdom for a purchase price of $44,053, consisting of $42,053 in cash and $2,000 in a note payable due in one year. Subsequent to the acquisition of Centaur, we funded $2,047 to the pension plan as required by the terms of the share purchase agreement. The purchase price was reduced subsequent to the acquisition date by $1,868 as a result of a post-closing working capital and debt adjustment. Centaur is a supplier of animal health products to veterinarians in the United Kingdom. Centaur sells 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. 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.

On March 21, 2011, 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.

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

		2011		2010		2009
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)		1,823		9,483		(117)
Intangibles		140		17,658		-
Total assets acquired		11,498		83,771		(117)
Accounts payable		4,498		25,811		-
Accrued expenses		-		5,299		-
Other liabilities		-		10,476		-
Total liabilities assumed		4,498		41,586		-
Net assets acquired (2)	$	7,000	$	42,185	$	(117)
(1) Amount in 2009 relates to a post-closing working capital adjustment for the AAHA MarketLink acquisition.
(2) Net assets acquired does not include $2,000 paid in fiscal year 2011 to an escrow account for the acquisition of Micro.

The following table presents supplemental pro forma information for the Company as if the acquisition of Centaur had occurred on October 1, 2009 for the period ended September 30, 2010 and on October 1, 2008 for the period ended September 30, 2009 (unaudited):

		Unaudited Pro Forma Consolidated Results
		Fiscal year ended September 30,
		2010		2009
Revenues	$	1,314,046	$	1,154,761
Net Income	$	34,726	$	27,213

For the pro forma calculation, we used an average foreign currency exchange rate for each of the periods 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 and on October 1, 2008. Additionally, the unaudited pro forma consolidated results do not purport to project the future results of operations of the combined company.