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Acquisitions
6 Months Ended
Mar. 31, 2013
Acquisitions  
Acquisitions

4. Acquisitions

        On November 26, 2012, NBTY acquired all of the outstanding shares of Balance Bar Company ("Balance Bar"), a company that manufactures and markets nutritional bars, for a purchase price of $78,132 of cash, subject to certain post-closing adjustments. NBTY used funds drawn from the revolving portion of our senior secured credit facilities to finance this acquisition.

        The purchase price has been allocated to assets acquired and liabilities assumed based on the estimated fair value of such assets and liabilities at the date of the acquisition. The following allocation of the purchase price is preliminary and based on information available to the Company's management at the time the consolidated financial statements were prepared. Accordingly, the allocation is subject to change and the impact of such changes could be material. The allocation of the purchase price is as follows:

Cash consideration

  $ 78,132  
       

Allocated to:

       

Cash and cash equivalents

    43  

Accounts receivable

    3,485  

Inventories

    8,672  

Other current assets

    152  

Property, plant, and equipment

    53  

Intangible assets

    55,000  

Other assets

    36  

Accounts payable

    (2,751 )

Accrued expenses and other current liabilities

    (167 )

Deferred income taxes

    (23,581 )
       

Net assets acquired

    40,942  
       

Goodwill

  $ 37,190  
       

        The fair values of the net assets acquired were determined using discounted cash flow analyses and estimates made by management with the assistance of independent valuation specialists. The purchase price was allocated to intangible assets as follows: approximately $37,190 to goodwill, which is non-amortizable under generally accepted accounting principles and is not deductible for income tax purposes, approximately $26,000 to tradenames, which are amortizable over thirty years and approximately $29,000 to customer relationships, which are amortizable over twenty-two years. Amortization of the acquired intangible assets is not deductible for income tax purposes. Balance Bar is expected to expand our nutritional bar business in the Wholesale segment. Additionally, we believe that we can achieve operating expense synergies with the integration of Balance Bar into our corporate structure, which is the primary driver behind the excess of the purchase price paid over the fair value of the assets and liabilities acquired.

        Results since the acquisition to date and pro forma financial information with respect to Balance Bar have not been provided as this acquisition was not considered material to our operations.