Business Acquisition

3 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Combination Disclosure Text Block

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 was 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 October 31, 2011, MWI Co. purchased substantially all of the assets of Micro Beef Technologies, Ltd. (“Micro”) for $60,878, including $53,400 in cash and 94,359 shares of common stock valued at $7,158, which is the fair value of the common stock as of the date of acquisition and a working capital adjustment of $320. The $53,400 paid in cash as consideration of Micro was funded with borrowings under our Credit Agreement (as defined in Note 7) as then in effect.Micro was a value-added distributor to the production animal market, including the distribution of micro feed ingredients, pharmaceuticals, vaccines, parasiticides, supplies and other animal health products. Micro also was a leading innovator of proprietary, computerized management systems for the production animal market.The intangible assets acquired in the acquisition include technology, customer relationships, trade name and covenant not to compete. The useful life of the amortizing intangible assets ranges from 5 years to 17 years. Trade name is a non-amortizing intangible asset. The amount recorded in goodwill is expected to be deductible for tax purposes over 15 years.

The fair values assigned to the tangible and intangible assets acquired and liabilities assumed are based onmanagement's estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuationprocedures and techniques. 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 Accounting Standards Codification (“ASC”) 280. These purchase price allocations are based on a combination of valuations and analyses.

	2012		2011
Cash	$	2	$	-
Receivables		22,373		4,041
Inventories		27,759		3,594
Other current assets		105		-
Property and equipment		8,882		1,900
Goodwill		12,415		1,823
Intangibles		15,760		140
Investments		199		-
Total assets acquired		87,495		11,498
Accounts payable		25,026		4,498
Accrued expenses and other liabilities		1,591		-
Total liabilities assumed		26,617		4,498
Net assets acquired	$	60,878	$	7,000

The following table presents information for Micro that is included in our consolidated statements of income from the acquisition date of October 31, 2011 through the end of the quarter ended June 30, 2012:

		Micro's operations included in MWI's results
		Three months ended June 30, 2012		Nine months ended June 30, 2012
Revenues	$	69,069	$	178,236
Net Income	$	897	$	3,210

The following table presents supplemental pro forma information as if the acquisition of Micro had occurred on October 1, 2011 for the nine months ended June 30, 2012 and on October 1, 2010 for the nine months ended June 30, 2011 (unaudited):

	Unaudited Pro Forma Consolidated Results
	Nine months ended June 30,
			2012		2011
Revenues		$	1,545,670	$	1,311,640
Net Income		$	40,971	$	34,975

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, 2011 or 2010. Additionally, the unaudited pro forma consolidated results do not purport to project the future results of operations of the combined company.