Acquisitions Of Businesses

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisitions Of Businesses

Acquisitions of Businesses

Acquisitions are accounted for utilizing the acquisition method of accounting and the prices paid for them are allocated to their respective assets and liabilities based on the estimated fair value of such assets and liabilities at the dates of their respective acquisition by us.

During the first nine months of 2019, we acquired five companies for total consideration of $83.6 million. One company provides electrical contracting services in central Iowa and its results have been included within our United States electrical construction and facilities services segment. Another company provides mechanical contracting services in south-central and eastern Texas and its results have been included within our United States mechanical construction and facilities services segment. The results of operations for the remaining three companies have been included within our United States building services segment. Of these three companies, one company provides mobile mechanical services in the Southern region of the United States while the remaining two companies provide building automation and controls solutions in the Western region of the United States. In connection with these acquisitions, we acquired working capital of $25.3 million and other net assets of $1.0 million and have preliminarily ascribed $28.3 million to goodwill and $29.0 million to identifiable intangible assets.

During calendar year 2018, we acquired four companies for total consideration of $71.6 million. Two companies provide mobile mechanical services, one within the Eastern region and the other within the Western region of the United States. The third company is a full service provider of mechanical services within the Southern region of the United States. The results of these three companies have been included in our United States building services segment. The fourth company provides electrical construction and maintenance services for industrial and commercial buildings in north Texas, and its results have been included in our United States electrical construction and facilities services segment. In connection with these acquisitions, we acquired working capital of $8.7 million and have preliminarily ascribed $26.3 million to goodwill and $36.6 million to identifiable intangible assets.

We expect that all of the goodwill acquired in connection with these acquisitions will be deductible for tax purposes. The purchase price allocations for the businesses acquired in 2019 and one of the businesses acquired in 2018 are preliminary and subject to change during their respective measurement periods. The purchase price allocations for the remaining three businesses acquired in 2018 have been finalized with an insignificant impact.