Joplin Acquisition

12 Months Ended

Mar. 31, 2014

On April 2, 2014, the Company completed its previously announced acquisition of a snack manufacturing plant in Joplin, Missouri (the “Joplin Plant”) from Safeway Inc. and Safeway Australia Holdings, Inc. (together the “Selling Parties”) for $6.0 million of cash, plus the value of inventory and supplies at closing (calculated based on the Selling Parties’ costs). The Company funded the acquisition with approximately $7.4 million in cash on hand and restricted cash of $0.3 million deposited previously in an escrow account. The Joplin Plant has been the primary manufacturer of the Company’s cookie and cracker products for more than ten years. Company products produced in the Joplin Plant currently account for over 40% of its total snacks net sales and represent the majority of the Joplin Plant’s total production volume. In connection with the closing of the acquisition, Annie’s Baking, LLC, the subsidiary of Annie’s that acquired the Joplin Plant, entered into a three-year supply agreement with an affiliate of Safeway Inc., pursuant to which the Company manufactures products for the affiliate. The preliminary allocation of the aggregate cost of acquisition was as follows (in thousands):



	Total Preliminary Purchase Price Allocation
Machinery and equipment	$	4,463
Inventory	1,495
Building and improvement	920
Land	180
Goodwill	450
Total purchase price	$	7,508