Note D - Acquisitions
|9 Months Ended|
Jun. 29, 2019
|Notes to Financial Statements|
|Business Combination Disclosure [Text Block]||
October 8, 2018,our
DTG2Go,LLC subsidiary purchased substantially all of the assets of Silk Screen Ink, Ltd. d/b/a SSI Digital Print Services ("SSI"), a premium provider of direct-to-garment digital printed products. The SSI business operated from locations in Iowa and Colorado serving the western and mid-western parts of the United States. During the
Marchquarter, we stopped production at the smaller operation in Colorado as the location was
notstrategic as it served the same geographic locations as the Iowa and existing Nevada locations.
The financial results of the acquired business have been included in our Delta Group since the date of the acquisition. It is
notpracticable to disclose the revenue and income of SSI since the acquisition date as we have integrated the SSI and
DTG2Gobusinesses together since acquisition.
The SSI acquisition purchase price consisted of
$2.0million in cash, a promissory note for
$3.0million in capital lease funding secured by the acquired fixed assets. The cash portion of the purchase price included a payment at closing of
$2.0million and a post-closing net working capital adjustment. The post–closing net working capital adjustment of
$0.7million was paid during the
Marchquarter. The below table represents the total consideration for the acquisition (in thousands):
The current allocation of consideration to the assets and liabilities are noted in the table below as well as measurement-period adjustments recorded in our Condensed Consolidated Balance Sheets as of
June 29, 2019.The adjustments are related to additional information obtained on conditions that existed at the acquisition date. The Company is in the process of finalizing its valuation of the intangible assets acquired; thus, the provisional measurements of intangible assets and goodwill are subject to change. The total amount of goodwill is expected to be deductible for tax purposes.
The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef