GBG Acquisition (Tables)

12 Months Ended

Dec. 31, 2018

GBG Acquisition

Schedule of allocation of the preliminary purchase price

The following table summarizes the allocation of the preliminary purchase price for the GBG Acquisition as of October 29, 2018 (in thousands):

	Purchase
	Price Allocation
Assets acquired and liabilities assumed:
Accounts receivable	$	65,106
Inventories		371,605
Prepaid expenses and other current assets		56,380
Property and equipment		86,971
Other assets		41
Accounts payable and accrued expenses		(589,849)
Intangible assets and liabilities acquired:
Goodwill		367,725
Leasehold interests		(2,310)
Customer relationships		824,000
Preliminary purchase price	$	1,179,669

Schedule of unaudited pro forma results

	Year ended December 31,
	2018			2017
	(in thousands)
Net sales	$	2,302,195		$	2,244,604
Cost of goods sold		1,785,871			1,691,199
Gross margin		516,324			553,405
Gross margin % of net sales		22.4	%		24.7	%
Operating expenses
Selling, general and administrative		569,726			423,392
Depreciation and amortization		90,241			92,554
Total operating expenses		659,967			515,946
Operating (loss) income		(143,643)			37,459
Interest expense		156,329			152,082
Gain on contingent consideration		(17,675)			(18,687)
Loss before income taxes		(282,297)			(95,936)
Income tax benefit		5,927			5,331
Net loss	$	(276,370)		$	(90,605)
Loss per common share – basic	$	(4.75)		$	(1.58)
Loss per common share – diluted	$	(4.75)		$	(1.58)
Weighted average shares outstanding basic and diluted		58,143			57,516