On April 3, 2018, using cash on hand and borrowings under the Credit Agreement, Grace acquired the assets of the polyolefin catalysts business of Albemarle Corporation. Grace acquired the business for $418.0 million, net of cash acquired and including customary post-closing adjustments. The business is included in the Specialty Catalysts operating segment of the Catalysts Technologies reportable segment. The acquisition is complementary to Grace's existing specialty catalysts business and strengthens Grace's commercial relationships, catalysts technology portfolio, and manufacturing network.

The acquisition purchase price has been preliminarily allocated to the tangible and identifiable intangible assets and liabilities acquired based on their estimated fair values at the acquisition date in accordance with ASC 805 “Business Combinations.” The excess of the purchase price over the fair value of the tangible and intangible assets acquired was recorded as goodwill. The goodwill recognized is attributable to the expected growth and operating synergies that Grace expects to realize from this acquisition. The full $143.5 million of goodwill generated from the acquisition will be deductible for U.S. income tax purposes. Grace is continuing to analyze the acquisition. Adjustments to the allocation, if applicable, will be recorded in the period in which they are identified. During the three months ended September 30, 2018, Grace recorded adjustments related to deferred taxes and working capital.

The Consolidated Statements of Operations for the three and nine months ended September 30, 2018, includes approximately $30 million and $58 million, respectively, of sales attributable to this acquisition. Disclosure of earnings attributable to this acquisition is not practicable due to the integration of operations into Grace’s existing business.

The table below presents the preliminary allocation of the acquisition purchase price.



	(In millions)
Accounts receivable	$	13.9
Inventories	28.9
Other current assets	0.6
Properties and equipment	119.8
Goodwill	143.5
Intangible assets	118.5
Other assets	0.5
Liabilities assumed	(7.7		)
Net assets acquired, net of cash acquired	$	418.0

The table below presents the intangible assets acquired as part of the acquisition of the assets of Albemarle’s polyolefin catalysts business and the periods over which they will be amortized.



	Amount (In millions)		Weighted Average Amortization Period (in years)
Customer Lists	$	102.7	20.0
Technology	11.5		15.0
Trademarks	4.3		15.0
Total	$	118.5	19.1

The carrying amount of goodwill attributable to each reportable segment and the changes in those balances during the nine months ended September 30, 2018, are as follows:



(In millions)	Catalysts Technologies			Materials Technologies		Total Grace
Balance, December 31, 2017	$	357.7		$	44.7	$	402.4
Goodwill acquired during the year	143.5			—		143.5
Foreign currency translation	(1.5		)	—		(1.5		)
Balance, September 30, 2018	$	499.7		$	44.7	$	544.4