ACQUISITION

6 Months Ended

Sep. 30, 2023

On May 3, 2023, we purchased the assets of a cement import terminal in Stockton, California (the Stockton Terminal Acquisition), which was accounted for under the acquisition method. The purchase price of the Stockton Terminal Acquisition was approximately $55.1 million. The purchase price allocation has not yet been finalized. The purchase price was funded through borrowings under our revolving credit facility. Operations related to the Stockton Terminal Acquisition are included in the Cement business in our segment reporting from May 3, 2023, through September 30, 2023.

The following table summarizes the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed (based on Level 3 inputs) as of September 30, 2023:



	Fair Value
Inventory	$	14,809
Prepaid and Other Current Assets		179
Property, Plant, and Equipment		12,737
Lease Right-of-Use Assets		1,646
Intangible Assets		16,100
Lease Obligations		(1,646	)
Other Long-term Liabilities		(630	)
Goodwill		11,858
Total Estimated Purchase Price	$	55,053

The estimated useful lives assigned to Property, Plant, and Equipment range from 5 to 30 years, while the estimated useful lives assigned to Intangible Assets range from 2 to 15 years. All goodwill generated from the Stockton Terminal Acquisition is deductible for income tax purposes.

The following table presents the Revenue and Operating Loss related to the Stockton Terminal Acquisition that has been included in our Consolidated Statement of Earnings from May 3, 2023, through September 30, 2023.



	For the Three Months Ended			For the Six Months Ended
	September 30, 2023
	(dollars in thousands)
Revenue	$	13,029		$	19,497
Operating Loss	$	(130	)	$	(2,050	)

Operating Loss shown above for the three months ended September 30, 2023 was affected by approximately $0.7 million and $1.1 million related to depreciation and amortization and the recording of acquired inventories at fair value, respectively. Operating Loss for the six months ended September 30, 2023, was affected by approximately $1.2 million and $3.9 million related to depreciation and amortization and the recording of acquired inventories at fair value, respectively.