Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Notes)

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Acquisitions (Notes)
6 Months Ended
Feb. 29, 2020
Acquisitions [Abstract]  
Business Combination Disclosure [Text Block]
Note 4.    Acquisitions
On January 7, 2020, the Company acquired 100% of the stock of HTL Group ("HTL"), a provider of controlled bolting products and calibration and repair services, as well as a strong rental business. The tuck-in acquisition of HTL now provides the Company with a complete bolting line of products and enhances our European rental capabilities. The Company acquired all of the assets and assumed certain liabilities of HTL for a purchase price of $33.4 million, net of cash acquired. The preliminary purchase price allocation resulted in $8.6 million of goodwill (which is not deductible for tax purposes), $18.0 million of intangible assets, and $7.3 million of property, plant and equipment. The impact on the remaining balance sheet line items was not material. The intangible assets were comprised of $3.7 million of indefinite-lived tradenames, $13.6 million of amortizable customer relationships and $0.7 million of amortizable patents. The fair values of the assets acquired and liabilities assumed are based on preliminary estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. While the Company believes these preliminary estimates provide a reasonable basis for estimating the fair value of the assets acquired and liabilities assumed, it will continue to evaluate available information prior to finalization of the amounts. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the fair value of rental assets acquired (component of property, plant, and equipment), intangible assets and the resulting impact on deferred income tax assets and liabilities.
The Company incurred transaction costs of $0.2 million for both the three and six months ended February 29, 2020 (included in "Selling, administrative and engineering expenses" in the Condensed Consolidated Statements of Operations) related to this acquisition.
This acquisition generated net sales of $2.0 million for the three months ended February 29, 2020 which are reported within the IT&S reportable segment. This acquisition does not meet the significance tests to require pro forma financial information otherwise required for acquisitions.