Acquisitions (Notes)

12 Months Ended

Dec. 31, 2016

Acquisitions [Abstract]

Business Combination Disclosure [Text Block]

Acquisitions

Primarily to expand its sales coverage and retain experienced sales representatives, the Company completed three acquisitions in 2016. In November, the Company acquired the assets of Mattic Industries Limited ("Mattic") an industrial parts distributor located in western Canada, for approximately $3.5 million in cash and $0.3 million in contingent consideration. In May, the Company acquired the assets of F.B. Feeney Hardware ("F. B. Feeney") in Ontario, Canada, for approximately $1.3 million in cash and $0.1 million in contingent consideration. And, in March, the Company acquired the assets of Perfect Products Company of Michigan ("Perfect Products"), an auto parts distributor for approximately $1.3 million in cash and $30 thousand in contingent consideration.

The Company allocated $0.7 million of the purchase price of the three acquisitions to an intangible asset for customer relationships which was included in Other assets in the Condensed Consolidated Balance Sheets which will be amortized over five years. Total contingent consideration of $0.4 million was not reflected in the condensed consolidated statement of cash flows.

The Company acquired one Company in 2015, West Coast Fasteners LTD (West Coast"), an auto parts distributor located in western Canada for approximately $0.4 million in cash.

A summary of the purchase price allocation of the acquisitions is as follows:

	(Dollars in thousands)
	December 31,
	2016		2015
Cash paid and liabilities assumed
Cash paid	6,030		441
Contingent consideration	412		—
Other liabilities	188		—
	$	6,630	$	441
Fair value of assets acquired
Goodwill	$	5,231	$	299
Customer relationships	733		—
Inventory	584		137
Other assets	82		5
	$	6,630	$	441

The following table contains unaudited pro forma net sales and net loss for Lawson Products assuming the Mattic, F.B Feeney and Perfect Product acquisitions closed on January 1, 2015 and the West Coast acquisition closed on January 1, 2014.

	(Dollars in thousands)
	Year Ended December 31,
	2016			2015		2014
Net Sales	$	280,445		$	283,575	$	286,552
Net income (loss)	(848		)	317		(4,643		)

The pro forma disclosures in the table above include adjustments for, amortization of intangible assets and acquisition costs to reflect results that are more representative of the combined results of the transactions as if the Mattic, F.B Feeney and Perfect Product acquisitions closed on January 1, 2015 and the West Coast acquisition closed on January 1, 2014. This pro forma information utilizes certain estimates, is presented for illustrative purposes only and may not be indicative of the results of operation that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, such as anticipated cost savings from operating synergies.