The acquisition has been accounted for as a purchase, and, accordingly, the purchase price was allocated to the net tangible and intangible assets acquired based on estimated fair values at the acquisition date.

Revenues
Revenues increased $62.0 million, or 24.9%, to $310.8 million for the fiscal year ended September 30, 2001, from $248.8 million for the fiscal year ended September 30, 2000. The revenue increase was primarily due to volume growth of 16.0% over the prior year, and higher per unit selling prices primarily associated with the branded product line pasta acquisitions. Volume growth was led by private label (26.8%) and ingredient (35.4%). We expect increases in revenue in fiscal 2002 due to growth with existing customers, new customer accounts, and the acquisition of the seven brands from Borden Foods.
Revenues for the Retail market increased $45.7 million, or 25.8%, to $223.3 million for the fiscal year ended September 30, 2001, from $177.6 million for the fiscal year ended September 30, 2000. The increase primarily reflects volume growth of 10.4% over the prior year, and higher per unit selling prices associated with the branded product line pasta acquisitions.
Revenues for the Institutional market increased $16.3 million, or 22.8%, to $87.5 million for the fiscal year ended September 30, 2001, from $71.2 million for the fiscal year ended September 30, 2000. This increase was primarily a result of volume growth of 17.4% over the prior year and higher average selling prices.

Gross Profit
Gross profit increased $27.7 million, or 39.6%, to $97.7 million for the fiscal year ended September 30, 2001, from $70.0 million for the fiscal year ended September 30, 2000. Gross profit increased generally as a result of the volume and revenue gains referenced above. Gross profit as a percentage of revenues increased to 31.4% for the fiscal year ended September 30, 2001 from 28.1% for the fiscal year ended September 30, 2000. The increase in gross profit as a percentage of revenues relates to incremental gross profit on branded products subsequent to the acquisitions. For the fiscal year 2002, we expect increases in gross profit and the gross profit percentage to continue as a result of the factors listed above.

Selling and Marketing Expense
Selling and marketing expense increased $15.8 million, or 98.2%, to $31.8 million for the fiscal year ended September 30, 2001, from $16.1 million reported for the fiscal year ended September 30, 2000. Selling and marketing expense as a percentage of revenues increased to 10.2% for the fiscal year ended September 30, 2001, from 6.5% for the comparable prior period. This increase was primarily due to higher marketing costs associated with higher retail revenues, as well as the incremental marketing and personnel costs associated with the Mueller’s acquisition. With the acquisitions of branded product lines from Bestfoods and Borden Foods, we expect marketing and selling expense to be significantly higher as a percent of sales than in prior periods.