Note 13

6 Months Ended

Mar. 28, 2020

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note 13 On October 1, 2019, we acquired the assets of ICEE Distributors LLC, based in Bossier City, Louisiana. ICEE Distributors does business in Arkansas, Louisiana and Texas with annual sales of approximately $13 million. Sales and operating income of ICEE Distributors were approximately $2.5 million and $400,000 for the second quarter and were approximately $5 million and $900,000 for the six months ended March 28,2020.

On February 4, 2020, we acquired the assets of BAMA ICEE, based in Birmingham, Alabama. BAMA ICEE does business in Alabama and Georgia with annual sales of approximately $3.5 million. Sales and operating income of BAMA ICEE were approximately $300,000 and $100,000 for the second quarter.

The preliminary purchase price allocations for the acquisitions are as follows:

	(in thousands)
	ICEE			BAMA			Total
	Distributors			ICEE
Accounts Receivable, net	$	722		$	71		$	793
Inventories		866			77			943
Property, plant & equipment, net		4,851			1,722			6,573
Customer Relationships		569			133			702
Distribution rights		21,200			6,800			28,000
Goodwill		16,973			3,549			20,522
Accounts Payable		(210	)		(125	)		(335	)
Purchase Price	$	44,970		$	12,227		$	57,197

The goodwill recognized is attributable to the assembled workforce of ICEE Distributors and certain other strategic intangible assets that do not meet the requirements for recognition separate and apart from goodwill.

Acquisition costs of $62,000 and $98,000 are included in other general expense for the three and six months ended March 28, 2020, respectively.

Our unaudited proforma results, giving effect to this acquisition and assuming an acquisition date of September 29, 2018, would have been:

	(in thousands)
	Three months ended				Six months ended
	March 28,		March 30,		March 28,		March 30,
	2020		2019		2020		2019
Net Sales	$	272,242	$	279,288	$	555,739	$	553,745
Net Earnings	$	7,308	$	20,385	$	24,366	$	37,914