Subsequent Events

3 Months Ended

Jul. 31, 2016

Subsequent Events

Subsequent Events

13. Subsequent Events

Subsequent to July 31, 2016, the Company acquired Steven F. Kempf Building Materials, Inc. (“SKBM”) and Olympia Building Supplies, LLC (“OBS”) for a total purchase price of approximately $75,627. SKBM and OBS distribute wallboard and related building materials from four locations in Pennsylvania and Florida. For the twelve months ended July 31, 2016, the combined companies generated an aggregate of approximately $99,724 in net sales.

Subsequent to July 31, 2016, the Company made an election under section 338 (h)(10) of the Internal Revenue Code which effectively changed the tax treatment of the Company’s acquisition of Gypsum Supply Company from a stock transaction to an asset transaction for tax purposes. As a result of this election, the Company will decrease deferred tax liabilities and tax expense in the three months ended October 31, 2016 by approximately $6,500.