Note 3 - Acquisitions
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Apr. 01, 2012
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Business Combination Disclosure [Text Block] |
Note
3 – Acquisition
On
May 27, 2010, Hamco paid $1.8 million to The Procter &
Gamble Company (“P&G”) to acquire certain
intellectual property related to P&G’s line of
Bibsters® disposable infant bibs. In a
separate but related transaction, Hamco also acquired the
inventory associated with the Bibsters® product line
from the exclusive licensee of Bibsters® for P&G,
whose license was terminated to coincide with the closing
(collectively, the two transactions represent the
“Bibsters® Acquisition”). Hamco
also recognized as expense $100,000 of direct costs
associated with the acquisition, which were included in
marketing and administrative expenses during fiscal year
2011. Because the operations of the Bibsters®
product line have been integrated with Hamco, and because the
assets acquired do not exist as a discrete entity within the
Company’s internal corporate structure, it is
impracticable to determine the earnings generated by the
assets acquired from the Bibsters® product line since
the acquisition date. The Company believes that
the pro forma impact of the acquisition is not
material.
The
fair values of the assets acquired were determined by the
Company with the assistance of an independent third
party. The Company’s allocation of the
acquisition cost is as follows (in thousands):
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