Acquisition of Guildford Builders Supply

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisition of Guilford Builders Supply

Acquisition of Guilford Builders Supply

On June 1, 2015, the Company acquired certain assets and assumed certain liabilities of Guilford Builders Supply (“GBS”), a provider of building materials and custom millwork located in Greensboro, North Carolina, for a preliminary purchase price of $2.2 million. The purchase price includes an initial holdback of $0.2 million due to the sellers on June 1, 2016. The holdback amount may be reduced under certain circumstances, including the Company’s inability to collect upon acquired receivables.

The acquisition was accounted for by the acquisition method, whereby the results of operations of GBS are included in the Company’s consolidated financial statements beginning on the acquisition date. The purchase price was allocated to the assets acquired and liabilities assumed. No goodwill resulted from the acquisition. The impact of the acquisition on our operating results was not significant for the reporting of pro forma financial information.

The Company incurred transaction costs of $0.1 million for the nine months ended September 30, 2015, which are included in selling, general and administrative expenses on the condensed consolidated statements of operations.