Question-and-Answer Session
Operator
(Operator Instructions) Our first question is coming from Ed Aaron - RBC Capital Markets.
Ed Aaron - RBC Capital Markets
In the quarter and with the guidance, it reflects, I think, some challenges in a few different areas pertaining to Millbrook, the branded business and the new facilities. Michael, I was hoping you could maybe talk a little bit about how you are managing the organization through the change brought on by the Millbrook acquisition.
I was surprised to some extent by the shortfall in the core business and wondering how much that has to do with the organization maybe being strained somewhat by the big change that it took on.
Michael S. Funk
Well, we do have a lot of things going on that we are investing in for our future growth and I think with the branded division we’ve built an infrastructure that’s prepared to handle a much larger business. In many ways we haven’t been able to get the type of companies acquired that we originally we were targeting.
Some of the activity on the branded side has been with really small, more startup type companies that have low revenue but still require a lot of expenses to handle and integrate into that branded business. So we’ve built a solid infrastructure there to handle that business. It’s a little ahead of the sales growth there.
So I feel really good about the future there. With Millbrook, it’s 10% of our business in terms of an acquisition. We are excited about the talent level that’s at Millbrook. There are always integration challenges to tackle. I think we were a little too optimistic on some of our initial forecast. And now I think we’ve reset the guidance to reflect a very achievable and manageable level.
We want to make sure with an acquisition like Millbrook is that we focus on taking care of the customers and trying to integrate at levels that are too quick that could potentially disrupt any customer service issues is not what we want to do. So we’re taking a little slower approach, ensuring that the customers get taken care of.
So while we do have a lot of things going, we opened two facilities in the past four months and have two more planned. This is the challenge of a growing company I think where we’ve built up our infrastructure to handle it and we will definitely be, I think, performing going forward along the lines of expectations.
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