Quarterly report pursuant to Section 13 or 15(d)

Acquisitions

v2.4.0.8
Acquisitions
 6 Months Ended
Feb. 28, 2014
Business Combinations [Abstract]  
Acquisitions
Acquisitions
Acquisitions result in the recognition of goodwill in the Company’s consolidated financial statements because their purchase price reflects the future earnings and cash flow potential of these companies, as well as the complementary strategic fit and resulting synergies these businesses are expected to bring to existing operations. The Company makes an initial allocation of the purchase price at the date of a business 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), including through asset appraisals and learning more about the newly acquired business, the Company will refine its estimates of fair value.
The Company acquired Viking SeaTech ("Viking") for $235.4 million on August 27, 2013. This Energy segment acquisition expanded the segment's geographic presence, technologies and services provided to the global offshore oil & gas industry. Headquartered in Aberdeen, Scotland, Viking is a support specialist providing a comprehensive range of equipment and services. Viking serves customers globally with primary markets in the North Sea (U.K. and Norway) and Australia. The majority of Viking's revenue is derived from offshore vessel mooring solutions which include design, rental, installation and inspection. Viking also provides survey, manpower and other marine services to offshore operators, drillers and energy asset owners. The purchase price allocation of the Viking acquisition resulted in the recognition of $87.7 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 for the three and six months ended February 28, 2014 and 2013, give effect to the Viking acquisition as though the transaction and related financing activities had occurred on September 1, 2012 (in thousands, except per share amounts):
 
Three Months Ended February 28,
 
Six Months Ended February 28,
 
2014
 
2013
 
2014
 
2013
Net sales

 

 

 

As reported
$
327,770

 
$
300,468

 
$
667,326

 
$
608,277

Pro forma
327,770

 
321,923

 
667,326

 
654,665

Earnings from continuing operations

 

 

 

As reported
$
22,304

 
$
25,834

 
$
55,309

 
$
56,385

Pro forma
22,304

 
27,195

 
55,309

 
60,868

Basic earnings per share from continuing operations

 

 

 

As reported
$
0.31

 
$
0.35

 
$
0.76

 
$
0.77

Pro forma
0.31

 
0.37

 
0.76

 
0.84

Diluted earnings per share from continuing operations

 

 

 

As reported
$
0.30

 
$
0.35

 
$
0.74

 
$
0.76

Pro forma
0.30

 
0.37

 
0.74

 
0.82