Business Acquisitions

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Business Acquisitions

4. BUSINESS ACQUISITIONS

Business acquisitions during fiscal year 2016 included (1) the stock of Bay-N-Gulf, Inc., d/b/a Save On Seafood, a seafood processor and distributor, acquired in October; (2) certain assets of Jeraci Food Distributors, Inc., an Italian specialty distributor, acquired in October; (3) the stock of Fresh Unlimited, Inc. d/b/a Freshway Foods, a produce processor, repacker, and distributor, acquired in June; and (4) certain assets of Cara Donna Provisions Co., Inc. and Cara Donna Properties LLC, a broadline distributor, acquired in March. Total consideration consisted of cash of approximately $123 million, plus approximately $8 million for the estimated fair value of contingent consideration.

On December 31, 2015, the Company purchased Waukesha Wholesale Foods, Inc. d/b/a Dierks Waukesha (“Dierks”), a broadline distributor for cash of $69 million. In March 2016, approximately $1 million was received as a purchase price adjustment related to the 2015 Dierks business acquisition, resulting in minimal decreases to Property and equipment-net and Goodwill. 

The acquisitions, focusing on broadline distributors with local strength with independent restaurants or specialty distributors with distinct capabilities across ethnic food, center-of-plate, and produce categories, were integrated into the Company’s foodservice distribution network and were funded with cash from operations.

The following table summarizes the purchase price allocations for the 2016 and 2015 business acquisitions as follows (in thousands):

	2016			2015
Accounts receivable	$	22,871		$	6,724
Inventories		9,493			7,022
Other current assets		732			702
Property and equipment		24,119			7,200
Goodwill		32,570			40,242
Other intangible assets		64,130			21,200
Accounts payable		(16,216	)		(3,290	)
Accrued expenses and other current liabilities		(12,173	)		(1,554	)
Long-term debt		(2,514	)		—
Deferred income taxes		—			(8,765	)
Cash paid for acquisitions	$	123,012		$	69,481

The 2016 and 2015 acquisitions did not materially affect the Company’s results of operations or financial position and, therefore, pro forma financial information has not been provided.