ACQUISITIONS

On July 8, 2016, a subsidiary of the Company completed the acquisition of substantially all of the assets and business of Lawrence Schiff Silk Mills, Inc. ("Schiff") for $1,125,000 in cash. Schiff was a leading U.S. manufacturer and distributor of narrow woven ribbon prior to its April 2016 Chapter 11 bankruptcy filing. The acquisition was accounted for using the acquisition method and resulted in a bargain purchase due to the fair value of the net assets acquired of approximately $1,501,000 exceeding the amount paid.

The following table summarizes the fair values of the assets acquired at the date of acquisition (in thousands):



Inventory	$	865
Property, plant and equipment	350
Intangible assets	500
Total assets acquired	1,715
Deferred tax liability	(214		)
Net assets acquired	$	1,501

In connection with this bargain purchase, the Company recorded a gain of approximately $376,000 in the consolidated statements of operations in the quarter ended September 30, 2016.