Acquisitions |
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| Acquisitions |
Acquisitions
The Company completed two business acquisitions during the last three years. These acquisitions resulted in the recognition of goodwill in the Company’s consolidated financial statements because the purchase prices reflected the future earnings and cash flow potential of these companies, as well as the complementary strategic fit and resulting synergies these businesses bring to existing operations. The Company incurred acquisition transaction costs of $0.1 million, $0.5 million and $3.7 million in fiscal 2015, 2014 and 2013, respectively, related to various business acquisition activities.
The Company makes an initial allocation of the purchase price, at the date of acquisition, based upon its understanding of the fair value of the acquired assets and assumed liabilities. The Company obtains this information during due diligence and through other sources. If additional information is obtained about these assets and liabilities within the measurement period (not to exceed one year from the date of acquisition), through asset appraisals and learning more about the newly acquired business, the Company will refine its estimates of fair value and adjust the purchase price allocation. During fiscal 2015, goodwill related to prior year acquisitions decreased by $3.2 million, the net result of purchase accounting adjustments to the fair value of acquired assets and assumed liabilities.
The Company acquired Hayes Industries Ltd. ("Hayes") on May 23, 2014 for $30.5 million. This Industrial segment acquisition is headquartered in Sugarland, Texas and maintains a leading position in the concrete tensioning market. Its products include patented encapsulated anchor systems, wedges and customized extruded cables. The purchase price allocation resulted in the recognition of $14.3 million of goodwill (which is deductible for tax purposes) and $10.6 million of intangible assets, including $5.0 million of patents, $3.3 million of customer relationships, $2.0 million of tradenames and $0.3 million for non-compete agreements.
The Company acquired Viking SeaTech (“Viking”) for $235.5 million on August 27, 2013. Viking expands the Energy segment's geographic presence, technologies and services provided to the global energy market. Headquartered in Aberdeen, Scotland, Viking provides marine mooring equipment and services to the offshore oil & gas industry. Viking serves customers globally with primary markets in the North Sea (the United Kingdom and Norway), Australia and Southeast Asia. The majority of Viking's revenue is derived from offshore vessel mooring solutions which include design, rental, installation and inspection. The purchase price allocation for this acquisition resulted in the recognition of $86.9 million of goodwill (which is not deductible for tax purposes) and $65.4 million of intangible assets, including $40.5 million of customer relationships and $24.9 million of tradenames.
The following unaudited pro forma results of operations of the Company give effect to all acquisitions completed in the years ended August 31, 2014 and 2013 as though the transactions and related financing activities had occurred on September 1, 2012 (in thousands, except per share amounts).
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