GBG Acquisition (Tables)

9 Months Ended

Sep. 30, 2019

GBG Acquisition

Schedule of allocation of the purchase price

The following table sets forth the current allocation of the purchase price to the net assets acquired and liabilities assumed, including measurement period adjustments (in thousands):

	Preliminary Purchase		Measurement Period		Revised Purchase
	Price Allocation		Adjustments		Price Allocation
Assets acquired and liabilities assumed:
Accounts receivable	$	65,106	$	328	$	65,434
Inventories		371,605		21,698		393,303
Prepaid expenses and other current assets		56,380		—		56,380
Property and equipment		86,971		—		86,971
Other assets		41		—		41
Accounts payable and accrued expenses		(589,849)		(2,708)		(592,557)
Intangible assets and liabilities acquired:
Goodwill		367,725		(19,318)		348,407
Leasehold interests		(2,310)		—		(2,310)
Customer relationships		824,000		—		824,000
Preliminary purchase price	$	1,179,669	$	—	$	1,179,669

Schedule of unaudited pro forma results

	Three months ended September 30,			Nine months ended September 30,
	2018			2018
	(in thousands)			(in thousands)
Net sales	$	605,710		$	1,586,177
Cost of goods sold		495,826			1,250,806
Gross margin		109,884			335,371
Gross margin % of net sales		18.1	%		21.1	%
Operating expenses
Selling, general and administrative		151,607			431,491
Depreciation and amortization		22,177			68,526
Total operating expenses		173,784			500,017
Operating loss		(63,900)			(164,646)
Interest expense		38,066			114,131
Other (income) expense, net		22			(17,551)
Loss before income taxes		(101,988)			(261,226)
Income tax benefit		(1,152)			(2,275)
Net loss	$	(100,836)		$	(258,951)