with commercial paper. In July 2006, we issued $100
million of 5.80% senior notes due 2011 to pay down
this commercial paper debt. This business operates in
North America and has been included in our consumer
segment since the date of acquisition. Simply Asia Foods
develops, imports and markets a line of authentic, easy-to-
prepare Asian products under the Thai Kitchen and
Simply Asia brands. Its primary products include noodle
and soup bowls, meal kits, coconut milk, and various
sauces and pastes. In 2007, we completed the final
valuation of assets for Simply Asia Foods which resulted
in $4.8 million being allocated to tangible net assets,
$28.2 million allocated to other intangibles assets and
$64.6 million allocated to goodwill. The value for brands
and other intangible assets consists of $12.1 million
which is amortizable and $16.1 million which is non-amortizable.
For tax purposes, goodwill resulting from
this acquisition is deductible.
In July 2007, we purchased Thai Kitchen SA for
$12.8 million in cash, a business which operates the Thai
Kitchen brand in Europe. This acquisition complements
our U.S. purchase of Simply Asia Foods in 2006. The
annual sales at the time of the acquisition were approximately
$7 million.
In August 2006, we invested $5.0 million in an
industrial joint venture in South Africa.
IMPAIRMENT CHARGE
In the fourth quarter of 2008, we recorded a non-cash
impairment charge to reduce the value of our Silvo brand
name in The Netherlands.
The financial results of the Silvo business, which we
acquired in 2004, have been affected by a reduction in
retail distribution driven by changing market conditions.
Over the last several years we have been pursuing
aggressive plans in response to these challenging market
conditions to build sales and profit for the Silvo brand. In
2008 our plans included innovation around the Silvo brand
and distribution expansion. As we progressed through
2008, execution of these plans was not meeting our
expectations. A revised strategy for the Silvo brand was |
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formulated and approved in late 2008. We conducted our
annual impairment testing of the Silvo brand intangible
asset under SFAS No. 142 utilizing the expected results
associated with this revised strategy. We calculated the
fair value of the Silvo brand using the relief-from-royalty
method and determined that the brand fair value was
below its carrying value. Consequently, we recorded
a non-cash impairment charge of $29.0 million in our
consumer business.
RESTRUCTURING ACTIVITIES
As part of our plan to improve margins, we announced
in September 2005 significant actions to improve the
effectiveness of our supply chain and reduce costs.
This restructuring plan was approved by the Board of
Directors in November 2005. As part of this plan, we
consolidated our global manufacturing, rationalized our
distribution facilities, improved our go-to-market strategy,
eliminated administrative redundancies and rationalized
our joint venture partnerships. As of November 30,
2008 the majority of our restructuring program had been
completed, although certain parts are still underway and
are expected to be completed in 2009.
The restructuring plan has reduced complexity and
increased the organizational focus on growth opportunities
in both the consumer and industrial businesses. We
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