Quarterly report pursuant to Section 13 or 15(d)

Acquisitions and Divestitures

v3.22.2
Acquisitions and Divestitures
 9 Months Ended
Jun. 25, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisitions and Divestitures Acquisitions and Divestitures
Acquisitions
Green Garden Products
On February 11, 2021, the Company acquired Flora Parent, Inc. and its subsidiaries ("Green Garden Products"), a leading provider of vegetable, herb and flower seed packets, seed starters and plant nutrients in North America, for approximately $571 million. The Company borrowed approximately $180 million under its credit facility to partially finance the acquisition. The purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $487 million, of which $392.9 million was allocated to identified intangible assets and approximately $142.4 million was included in goodwill in the Company's condensed consolidated balance sheet as of June 25, 2022. The financial results of Green Garden Products have been included in the results of operations within the Garden segment since the date of acquisition. The following table summarizes the purchase price and recording of fair values of the assets acquired and liabilities assumed as of the acquisition date and subsequent adjustments.
Amounts Previously Recognized as of Acquisition Date (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date (as Adjusted)
(in thousands)
Current assets, net of cash and cash equivalents acquired $ 118,421  $ 31,826  $ 150,247 
Fixed assets 2,340  —  2,340 
Goodwill —  142,356  142,356 
Other intangible assets, net —  392,929  392,929 
Other assets 487,420  (487,259) 161 
Operating lease right-of-use assets 14,577  —  14,577 
Current liabilities (26,507) —  (26,507)
Long-term lease liabilities (10,912) —  (10,912)
Deferred income taxes and other long-term obligations (14,829) (79,852) (94,681)
Net assets acquired, less cash and cash equivalents $ 570,510  $ —  $ 570,510 
(1) As previously reported in the Company's Form 10-K for the fiscal year ended September 25, 2021.
The impact to the condensed consolidated statement of operations associated with the finalization of purchase accounting and true-up of intangible asset amortization for Green Garden Products was immaterial.
D&D Commodities Limited
On June 30, 2021, the Company purchased D&D Commodities, Ltd. ("D&D"), a provider of high-quality, premium bird feed, for approximately $88 million in cash and the assumption of approximately $30 million of long-term debt. The Company has not yet finalized the allocation of the purchase price to the fair value of the tangible assets, intangible assets and liabilities acquired. Approximately $101 million of the purchase price remains unallocated. Deferred taxes associated with the intangible assets acquired will be finalized upon completion of the purchase accounting. The addition of D&D will expand Central's portfolio in the bird feed category and is expected to deepen the Company's relationship with major retailers. The financial results of D&D have been included in the results of operations within the Garden segment since the date of acquisition.
The Company includes the unallocated purchase price for acquisitions in other assets on its condensed consolidated balance sheet.