Annual report [Section 13 and 15(d), not S-K Item 405]

Acquisitions

v3.25.4
Acquisitions
 12 Months Ended
Dec. 25, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisition
On June 7, 2023, the Company acquired 100% of Salesmaster Associates to expand its commercial surfaces business. The acquisition is accounted for in accordance with ASC 805, and the results of operations, financial position, and cash flows related to the acquisition have been included in the Company’s consolidated financial statements since the acquisition date. The total purchase consideration of $20.1 million was comprised of $17.4 million of cash, net of cash acquired, and $2.8 million of contingent consideration. The Company recorded the following assets and liabilities at their respective estimated acquisition date fair values: $12.1 million of net working capital consisting primarily of inventory and receivables, $6.0 million of lease right-of-use assets and fixed assets, $5.0 million of customer relationships, $2.5 million of goodwill, and $5.5 million of operating lease liabilities. The estimated fair value of the customer relationships was determined with assistance from a third-party valuation specialist using the multi-period excess earnings method and included significant assumptions such as the amount and timing of projected cash flows, growth rates, customer attrition rates, and discount rates, resulting in a Level 3 classification within the fair value hierarchy. Refer to Note 7, “Fair Value Measurements” for additional information regarding the contingent consideration.
During fiscal 2023, the Company recognized business acquisition and integration costs totaling $0.9 million in SG&A expenses within the Consolidated Statements of Operations and Comprehensive Income. The Company incurred no business acquisition and integration costs during fiscal years 2025 and 2024.