Subsequent Events |
9 Months Ended |
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Jun. 30, 2021 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events Alabama Acquisition
On July 30, 2021, a subsidiary of the Company acquired the operations of an HMA production and paving company and its affiliated aggregates company headquartered in Cullman, Alabama. As a result of the acquisition, the Company added four HMA plants, four aggregate facilities, and a diverse fleet of trucks and construction equipment to support its operations in central and northern Alabama.
North Carolina Acquisition
On August 2, 2021, a subsidiary of the Company acquired a crushed stone and aggregates facility located near Goldston, North Carolina. The purchase enhanced the Company’s vertical integration strategy of construction materials to support its HMA production operations. The Company expects to use the aggregates mined from this facility to supply multiple HMA plants that the Company acquired during the first quarter of fiscal 2021.
Both acquisitions will be accounted for as business combinations in accordance with ASC 805. The combined purchase price of $112.9 million (exclusive of consideration to the seller for inventory assets acquired at the Goldston, North Carolina facility) was paid from cash on hand at closing. In each case, 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 Fair Value Measurements above in Note 2 - Significant Accounting Policies. The amount of the purchase price exceeding the preliminary net fair value of identifiable assets acquired and liabilities assumed is expected to be recorded as goodwill, which is deductible for income tax purposes. 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 preliminary amount allocated to goodwill.
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