In early 2014, Jeremy and the three sisters agreed to terms for Longhorn to acquire Noles. Longhorn issued 5.5 million shares of Longhorn’s common stock to the sisters. The acquisition was completed on July 1, 2014 when the Longhorn common stock was trading at $13.50 per share (par value of $0.01). The transaction was valued at $74.25 million. In the near term, Longhorn’s management does not expect any operational synergies as a result of the acquisition of Noles. Their products are complementary, but not such that operations and marketing can be combined. The only savings as a result of the merger will be the elimination of some duplicative executive positions that total approximately $2.3 million annually, but these will not be realized until 2015 or later. Overall, the profit impact of the acquisition on the consolidated
results of Longhorn in the near term will, therefore, be additive.