3. GBG Acquisition On October 29, 2018, the Company completed the GBG Acquisition for a preliminary purchase price of $1.2 billion. To finance the acquisition, the Company entered into the Credit Agreements (as defined below). The First Lien Credit Agreement (as defined below) provides for a senior secured asset based revolving credit facility with commitments in an aggregate principal amount of $150.0 million, which subsequently increased to $200.0 million, and a senior secured term loan credit facility in an aggregate principal amount of $645.0 million. The Second Lien Credit Agreement (as defined below) provides for a second lien term loan facility in an aggregate principal amount of $668.0 million. See Note 8  Debt for a discussion of the terms of the Credit Agreements and amendments thereto. The purchase price allocation is subject to adjustment until the Company has completed its analysis within the measurement period. The purchase price allocation is preliminary and the finalization of the Companys purchase price allocation may result in changes in the valuation of assets acquired and liabilities assumed. The Company will finalize the purchase price allocation during the fourth quarter of 2019. During the three months ended September 30, 2019, the Company obtained additional information regarding the fair value of certain acquired assets and liabilities based on facts that existed at the date of acquisition. The following table sets forth the current allocation of the purchase price to the net assets acquired and liabilities assumed, including measurement period adjustments (in thousands): Preliminary Purchase Measurement Period Revised Purchase Price Allocation Adjustments Price Allocation Assets acquired and liabilities assumed: Accounts receivable $ 65,106 $ 328 $ 65,434 Inventories 371,605 21,698 393,303 Prepaid expenses and other current assets 56,380  56,380 Property and equipment 86,971  86,971 Other assets 41  41 Accounts payable and accrued expenses (589,849) (2,708) (592,557) Intangible assets and liabilities acquired: Goodwill 367,725 (19,318) 348,407 Leasehold interests (2,310)  (2,310) Customer relationships 824,000  824,000 Preliminary purchase price $ 1,179,669 $  $ 1,179,669 Unaudited pro forma financial information The following table presents our unaudited pro forma results for the three months ended September 30, 2018 and nine months ended September 30, 2018, as if the GBG Acquisition had occurred on January 1, 2018. The unaudited pro forma financial information presented includes the effects of adjustments related to the amortization of acquired tangible and intangible assets, and excludes other non-recurring transaction costs directly associated with the acquisition such as legal and other professional service fees. Three months ended September 30, Nine months ended September 30, 2018 2018 (in thousands) (in thousands) Net sales $ 605,710 $ 1,586,177 Cost of goods sold 495,826 1,250,806 Gross margin 109,884 335,371 Gross margin % of net sales 18.1 % 21.1 % Operating expenses Selling, general and administrative 151,607 431,491 Depreciation and amortization 22,177 68,526 Total operating expenses 173,784 500,017 Operating loss (63,900) (164,646) Interest expense 38,066 114,131 Other (income) expense, net 22 (17,551) Loss before income taxes (101,988) (261,226) Income tax benefit (1,152) (2,275) Net loss $ (100,836) $ (258,951) The unaudited pro forma financial information as presented above is for information purposes only and is not necessarily indicative of the actual results that would have been achieved had the GBG Acquisition occurred at the beginning of the earliest period presented or the results that may be achieved in future periods.