2. Business Acquisitions

The Company operates in a highly fragmented industry. A key component of the Company's strategy is growth through acquisition that expands its geographic coverage, provides complementary lines of business and increases its market share.

The Company has accounted for all business combinations using the purchase method to record a new cost basis for the assets acquired and liabilities assumed. The Company recorded, based on purchase price allocations, intangible assets representing customer relationships, tradenames, and excess of purchase price over the estimated fair values of the net assets acquired as "Goodwill" in the accompanying Consolidated Financial Statements. The goodwill is attributable to synergies achieved through the streamlining of operations combined with improved margins attainable through increased market presence, and is all attributed to our one operating reportable segments. The results of operations are reflected in the Consolidated Financial Statements of the Company from the date of acquisition.

(a) 2017 Acquisitions

In fiscal 2017, the Company completed the following acquisitions, with an aggregate purchase price of $153,676, comprised of $148,705 of cash consideration and $4,971 of consideration related to working capital settlements and contingent consideration, subject to finalization of working capital settlement amounts. In connection with these acquisitions, the Company incurred transaction costs of $2,160 in the year ended April 30, 2017. These costs are included in "Selling, general and administrative" expenses in the Company's accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). The purpose of these acquisitions was to expand the geographical coverage of the Company and grow the business.

Company name	Form of acquisition	Date of acquisition
Wall & Ceiling Supply Co., Inc.	Purchase of net assets	May 2, 2016
Rockwise, LLC	Purchase of net assets	July 5, 2016
Steven F. Kempf Building Materials, Inc.	Purchase of net assets	August 29, 2016
Olympia Building Supplies, LLC/Redmill, Inc.	Purchase of 100% of outstanding common stock	September 1, 2016
United Building Materials, Inc.	Purchase of net assets	October 3, 2016
Ryan Building Materials, Inc.	Purchase of net assets	October 31, 2016
Interior Products Supply	Purchase of net assets	December 5, 2016
Hawaii-based distribution assets of Grabber Construction Products	Purchase of net assets	February 1, 2017

The preliminary allocation of consideration for these acquisitions is summarized as follows:

	Preliminary purchase price allocation April 30, 2017
Cash and cash equivalents	$	1,558
Trade accounts and notes receivable		37,691
Inventories		16,504
Property and equipment		8,357
Other assets		657
Tradenames		9,490
Customer relationships		64,660
Goodwill		37,728
Deferred tax liability		(6,011	)
Liabilities assumed		(16,958	)

Purchase price	$	153,676

Goodwill of $25,510 and other intangible assets of $53,550 are expected to be deductible for U.S. federal income tax purposes. Goodwill of $12,218 and other intangibles of $20,600 are nondeductible for U.S. federal income tax purposes. The Company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the Company is waiting for additional information necessary to finalize those fair values, specifically, the finalization of working capital settlements. Thus, the provisional measurements of fair value set forth above are preliminary. Such changes are not expected to be significant. The Company expects to complete the purchase price allocation as soon as practicable, but no later than one year from the applicable acquisition date. The pro forma impact of these acquisitions is not presented as it is not considered material to our Consolidated Financial Statements.

(b) 2016 Acquisitions

In fiscal 2016, the Company completed the following acquisitions, with an aggregate purchase price of $117,181, comprised of $114,812 net of cash consideration and $2,369 of consideration related to working capital settlements and contingent consideration, subject to finalization of working capital settlement amounts. In connection with these acquisitions, the Company incurred transaction costs of $2,056 in the year ended April 30, 2016. These costs are included in "Selling, general and administrative" expenses in the Company's accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). The purpose of these acquisitions was to expand the geographical coverage of the Company and grow the business.

Company name	Form of acquisition	Date of acquisition
Tri-Cities Drywall & Supply Co.	Purchase of net assets	September 29, 2015
Badgerland Supply, Inc.	Purchase of net assets	November 2, 2015
Hathaway & Sons, Inc.	Purchase of net assets	November 9, 2015
Gypsum Supply Company	Purchase of 100% of outstanding common stock	January 1, 2016
Robert N. Karpp Co., Inc.	Purchase of net assets	February 1, 2016
Professional Handling & Distribution, Inc.	Purchase of net assets	February 1, 2016
M.R. Lee Building Materials, Inc.	Purchase of net assets	April 4, 2016

The allocation of consideration for these acquisitions is summarized as follows:

	Preliminary purchase price allocation April 30, 2016			Adjustments/ Reclassifications			Final purchase price allocation April 30, 2017
Cash and cash equivalents	$	956		$	(3	)	$	953
Trade accounts and notes receivable		26,707			281			26,988
Inventories		17,543			160			17,703
Property and equipment		9,236			—			9,236
Other assets		808			—			808
Tradenames		12,500			—			12,500
Below market leases		2,020			—			2,020
Customer relationships		29,055			—			29,055
Goodwill		38,833			(434	)		38,399
Deferred tax liability		(6,676	)		—			(6,676	)
Liabilities assumed		(13,804	)		(1	)		(13,805	)

Purchase price	$	117,178		$	3		$	117,181

During fiscal 2017, the Company finalized the purchase price allocations. Goodwill of $13,357 and other intangible assets of $26,335 are expected to be deductible for U.S. federal income tax purposes. Goodwill of $25,042 and other intangibles of $17,240 are nondeductible for U.S. federal income tax purposes. The pro forma impact of these acquisitions is not presented as it is not considered material to our Consolidated Financial Statements.

In fiscal 2015, the Company completed the following acquisitions, with an aggregate purchase price of $72,208, comprised of $69,168 net of cash consideration and $3,040 of contingent consideration. In connection with these acquisitions, the Company incurred transaction costs of $12 and $945 in the years ended April 30, 2016 and 2015, respectively. These costs are included in "Selling, general and administrative" expenses in the Company's accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). The purpose of these acquisitions was to expand the geographical coverage of the Company and grow the business.

Company name	Form of acquisition	Date of acquisition
Contractors' Choice Supply, Inc.	Purchase of net assets	August 1, 2014
Drywall Supply, Inc.	Purchase of net assets	October 1, 2014
Allsouth Drywall Supply Company	Purchase of net assets	November 24, 2014
Serrano Supply, Inc.	Purchase of net assets	February 2, 2015
Ohio Valley Building Products, LLC	Purchase of net assets	February 16, 2015
J&B Materials, Inc.	Purchase of net assets	March 16, 2015

The final allocation of consideration for these acquisitions is summarized as follows:

	Final purchase price allocation
Trade accounts and notes receivable	$	15,066
Inventories		8,760
Property and equipment		5,116
Other assets		76
Tradenames		3,260
Customer relationships		30,840
Goodwill		20,337
Liabilities assumed		(11,247	)

Purchase price	$	72,208

During fiscal 2016, the Company finalized the purchase price allocations. Goodwill of $20,337 and other intangible assets of $34,100 are expected to be deductible for U.S. federal income tax purposes. The pro forma impact of these acquisitions is not presented as it is not considered material to our Consolidated Financial Statements.