Acquisitions

9 Months Ended

Jun. 30, 2021

Acquisitions and DivestituresAcquisitions support the Company’s strategy of delivering a broad solutions portfolio with robust technology across multiple geographies and end markets. The Company continues to evaluate potential strategic acquisitions of businesses, assets and product lines and believes that capex-like, tuck-in acquisitions present a key opportunity within its overall growth strategy.

On April 1, 2021, the Company acquired the assets of Water Consulting Specialists, Inc. (“WCSI”) for $12,025 cash paid at closing. In addition, the Company recorded a liability of $761 associated with an earn-out related to the WCSI acquisition, which is included in Accrued expenses and other liabilities on the Consolidated Balance Sheets. WCSI is a leader in the design, manufacturing, and service of industrial high-purity water treatment systems. The acquisition strengthens the Company’s portfolio of high-purity water treatment systems and provides the opportunity to further expand its digitally enabled solutions and services in key industrial markets. WCSI is a part of the Integrated Solutions and Services segment. During the nine months ended June 30, 2021, the Company incurred approximately $117 in acquisition costs, which are included in General and administrative expense on the Unaudited Consolidated Statements of Operations.

The Company has not finalized the valuations of the acquired assets, assumed liabilities, and identifiable intangible assets, including goodwill. The preliminary opening balance sheet for WCSI is summarized as follows:


Current assets	$	1,813
Property, plant and equipment	221
Goodwill	4,361
Intangible assets, net	7,336
Other non-current assets	86
Total assets acquired	13,817
Liabilities assumed	(1,792)
Net assets acquired	$	12,025

On December 17, 2020, the Company acquired the industrial water business of Ultrapure & Industrial Services, LLC (“Ultrapure”) for $8,743 cash paid at closing. On April 1, 2021, the Company paid an additional $290 as a result of net working capital adjustments. Ultrapure, based out of Texas, provides customers across multiple end markets with a variety of water treatment products and services, including service deionization, reverse osmosis, UV, and ozonation. Ultrapure will strengthen the Company’s service capabilities in the Houston and Dallas markets and is a part of the Integrated Solutions and Services segment. During the nine months ended June 30, 2021, the Company incurred approximately $230 in acquisition costs, which are included in General and administrative expense on the Unaudited Consolidated Statements of Operations.

The Company has not finalized the valuations of the acquired assets, assumed liabilities and identifiable intangible assets, including goodwill. The preliminary opening balance sheet for Ultrapure is summarized as follows:


Current assets	$	2,366
Property, plant and equipment	963
Goodwill	2,836
Intangible assets, net	3,751
Other non-current assets	21
Total assets acquired	9,937
Liabilities assumed	(904)
Net assets acquired	$	9,033

On March 1, 2021, the Company completed the divestiture of the Lange containment system, geomembrane and geosynthetic liner product line (the “Lange Product Line”) for $897 in cash at closing. The Lange Product Line was a part of the Integrated Solutions and Services segment. During the nine months ended June 30, 2021, the Company recognized a loss of $193 on the divestiture.