Acquisitions

During the fiscal year ended August 26, 2017, the Company completed six business acquisitions (including Arrow discussed below) with an aggregate purchase price of approximately $125.5 million. The results of operations of these acquisitions have been included in the Company’s consolidated financial results since their respective acquisition dates. These acquisitions were not significant in relation to the Company’s consolidated financial results and, therefore, pro forma financial information has not been presented.

Aggregate information relating to the acquisition of businesses which were accounted for as purchases is as follows (in thousands, except number of businesses acquired):



Year ended	August 26, 2017			August 27, 2016			August 29, 2015
Number of businesses acquired	6			6			7
Tangible assets acquired	$	26,174		$	3,572		$	4,179
Intangible assets and goodwill acquired	101,530			14,239			18,190
Liabilities assumed	(2,156		)	(80		)	(10		)

Acquisition of businesses	$	125,548		$	17,731		$	22,359

Tangible assets acquired primarily relate to accounts receivable, inventory, prepaid expenses and property, plant and equipment. Liabilities assumed primarily relate to accounts payable and accrued liabilities.

The amount assigned to intangible assets acquired was based on their respective fair values determined as of the acquisition date. The excess of the purchase price over the tangible and intangible assets was recorded as goodwill. In fiscal 2017 and 2016, all of the goodwill was allocated to the US and Canadian Rental and Cleaning segment and is deductible for tax purposes.

On September 19, 2016, the Company completed an acquisition of Arrow Uniform (“Arrow”) for approximately $118.7 million. The all-cash transaction was structured as an asset acquisition, with the Company acquiring substantially all of Arrow’s assets and a limited amount of liabilities. Arrow, headquartered in Taylor, Michigan, provided uniform and facility service rental programs as well as direct sales uniform programs to a wide range of large and small customers. Arrow operated from 12 locations with nearly 700 employees in five Midwestern states.

The Arrow acquisition was accounted for using the purchase method of accounting. The Company engaged specialists to assist in the valuation of intangible assets. The table below summarizes the final purchase price allocation to the estimated fair value of assets acquired and liabilities assumed at the acquisition date. Goodwill is calculated as the excess of the purchase price over the net assets recognized and represents the estimated future economic benefits arising from expected synergies and growth opportunities for the Company. All of the goodwill and intangible assets were allocated to the US and Canadian Rental and Cleaning segment and are deductible for tax purposes.

The components of the consideration transferred in conjunction with the Arrow acquisition and the final allocation of that consideration is as follows (in thousands):



Receivables	$	7,365
Inventories	1,824
Rental merchandise in service	7,175
Prepaid expense and other current assets	1,722
Property, plant and equipment	2,619
Goodwill	51,624
Customer contracts	41,199
Other intangible assets	2,580
Other assets	4,790
Accrued liabilities	(2,156		)
Total Purchase Price	$	118,742