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Acquisitions (Tables)
3 Months Ended
Aug. 31, 2023
Schedule of Consideration Transferred for the Assets and the Preliminary Fair Value Assigned to Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid and the final fair value assigned to the assets and liabilities assumed at the acquisition date.

 

(In thousands)

 

Preliminary
Valuation

 

 

Measurement
Period
Adjustments

 

 

Final
Valuation

 

Cash and cash equivalents

 

$

1,515

 

 

$

-

 

 

$

1,515

 

Accounts receivable

 

 

2,860

 

 

 

-

 

 

 

2,860

 

Inventories

 

 

9,161

 

 

 

-

 

 

 

9,161

 

Prepaid expenses

 

 

64

 

 

 

-

 

 

 

64

 

Property, plant and equipment

 

 

273

 

 

 

-

 

 

 

273

 

Intangible assets

 

 

33,580

 

 

 

-

 

 

 

33,580

 

Operating lease assets

 

 

377

 

 

 

-

 

 

 

377

 

Total identifiable assets

 

 

47,830

 

 

 

-

 

 

 

47,830

 

Accounts payable

 

 

(3,175

)

 

 

-

 

 

 

(3,175

)

Accrued expenses

 

 

(904

)

 

 

151

 

 

 

(753

)

Current operating lease liabilities

 

 

(111

)

 

 

-

 

 

 

(111

)

Noncurrent operating lease liabilities

 

 

(266

)

 

 

-

 

 

 

(266

)

Net identifiable assets

 

 

43,374

 

 

 

151

 

 

 

43,525

 

Goodwill

 

 

15,947

 

 

 

-

 

 

 

15,947

 

Total purchase price

 

 

59,321

 

 

 

151

 

 

 

59,472

 

Less: Fair value of earnout

 

 

(2,000

)

 

 

-

 

 

 

(2,000

)

Plus: Net working capital deficit

 

 

282

 

 

 

(151

)

 

 

131

 

Cash purchase price

 

$

57,603

 

 

$

-

 

 

$

57,603

 

Level5 Tools, LLC  
Schedule of Acquisition of Intangible Assets In connection with the acquisition of Level5, we identified and valued the following intangible assets:

 

(In thousands)

 

 

 

 

 

Category

 

Amount

 

 

Useful Life (Years)

Trade name

 

$

13,500

 

 

Indefinite

Customer relationships

 

 

13,300

 

 

10

Technological know-how

 

 

6,500

 

 

20

Non-compete agreement

 

 

280

 

 

3

Total acquired identifiable intangible assets

 

$

33,580

 

 

 

 

The purchase price includes the fair values of other assets that were not identifiable, not separately recognizable under accounting rules (e.g., assembled workforce) or of immaterial value. The purchase price also includes strategic and synergistic benefits (investment value) specific to us, which resulted in a purchase price in excess of the fair value of the identifiable net assets. This additional investment value resulted in goodwill which will be deductible for income tax purposes.