Business Acquisitions |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Acquisitions | Business Acquisitions North Carolina Acquisitions
During the three months ended December 31, 2020, a subsidiary of the Company purchased four HMA production and paving companies on the following dates and based in the following locations: (i) on October 8, 2020, in Carthage, North Carolina, (ii) on October 30, 2020, in Ahoskie, North Carolina, (iii) on December 3, 2020, in Raleigh, North Carolina, and (iv) on December 18, 2020, in Kitty Hawk, North Carolina. The acquired businesses added thirteen HMA plants in central and eastern North Carolina, providing the Company with access to additional markets and expanding its footprint in the state.
The acquisitions were accounted for as business combinations in accordance with ASC 805. The provisional allocation of the purchase price to assets acquired and liabilities assumed, based on their estimated fair values at the acquisition date, was determined in accordance with the methodology described under the heading “Fair Value Measurements” above in Note 2 - Significant Accounting Policies. Goodwill primarily represents the assembled workforce and synergies expected to result from the acquisition. Upon finalizing the accounting for these transactions, management expects to ascribe value to other identifiable intangible assets, including customer relationships and customer backlog, which will reduce the provisional amount allocated to goodwill.
For the acquisitions completed during the three months ended December 31, 2020, the Company paid combined consideration of $84.1 million, provisionally allocated as follows: $4.0 million of inventory, $0.8 million of other current assets, $48.6 million of property, plant and equipment and $30.7 million of goodwill, which is expected to be deductible for income tax purposes. An additional payable of $0.3 million for property, plant and equipment is included in accounts payable at December 31, 2020. The Consolidated Statement of Income for the three months ended December 31, 2020 includes $7.1 million of revenue and a $(0.2) million in net loss attributable to the operations of these acquisitions from their respective acquisition dates through December 31, 2020.
Results of Operations of Acquisitions Completed Subsequent to December 31, 2019
Unaudited consolidated pro forma revenues and net income, as if our acquisitions completed subsequent to December 31, 2019 (including those described above) had been completed as of October 1, 2019 are as follows (in thousands):
Pro forma information is presented for informational purposes and may not be indicative of revenue that would have been achieved if the acquisitions had actually been completed as of October 1, 2019.
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