Acquisitions

On February 1, 2018, the Company acquired Canton Drop Forge (“CDF”) for $35.6 million. CDF, which has annual revenues of approximately $60 million, manufactures forgings for high-performance applications in the global aerospace, oil and gas, and other markets. Headquartered in Canton, Ohio, CDF is included in our Forged and Machined Products group in our Engineered Products segment.

The allocation of the purchase price is subject to finalization of the Company’s determination of the fair values of the assets acquired and liabilities assumed as of the acquisition date, and it could be materially different from the estimates presented below. The Company has not yet completed its analysis of the fair value of property, plant and equipment; intangible assets; inventory; and deferred income taxes. The final allocation is expected to be completed as soon as practicable but no later than one year after the acquisition date. Below is the initial estimated purchase price allocation related to the acquisition of CDF:



	(In millions)
Net working capital	$	20.5
Property, plant and equipment	15.8
Intangible assets	7.0
Goodwill	5.0
Net pension liability	(4.0		)
Other long-term liabilities, including deferred income tax liabilities	(8.7		)
Total purchase price (net of cash acquired of $1.2 million)	$	35.6

On April 28, 2017, the Company acquired Aero-Missile Components Inc. (“AMC”). AMC, which is included in our Supply Technologies segment, is a supply chain management business providing high-quality specialty fasteners and other components to the defense and aerospace markets in the United States.

On October 3, 2017, the Company completed the acquisition of Heads & All Threads Ltd. (“HAT”). HAT, which is included in our Supply Technologies segment, is a leading European supplier of supply chain management services specializing in developing vendor-managed inventory programs of fasteners, machined parts and other class C components to various industrial end markets.

During the second quarter of 2018, the Company finalized its valuation of the assets acquired and liabilities assumed from the HAT acquisition. Specifically, the Company determined the valuation of customer relationships was $4.0 million as of the acquisition date, resulting in an adjustment to the preliminary purchase price allocation to increase acquired intangible assets by $2.0 million, increase deferred tax liability by $0.4 million and decrease goodwill by $1.6 million. In addition, the Company recorded a cumulative catch-up adjustment of $0.1 million to increase previously recorded intangible amortization expense for the updated valuation.

On December 29, 2017, the Company completed the acquisition of an injection molding business. The acquisition, which is included in our Assembly Components segment, is a manufacturer of precision-molded rubber components for several industrial markets.

Collectively, the acquisition of CDF and the 2017 acquisitions contributed sales of $37.0 million and $68.0 million for the three and six months ended June 30, 2018.