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Sale of Composites Business	12 Months Ended
May 31, 2020
Sale of Composites Business
Sale of Composites Business	16. Sale of Composites Business On June 23, 2020, we entered into an asset purchase agreement (the “Composites Sale Agreement”) for the sale of our aerostructures and aerospace products operations located in Clearwater, Florida and Sacramento, California (the “Composites”). The sale of Composites is consistent with our multi-year strategy to focus our portfolio on our core services offerings and the transaction will allow the Company to further prioritize its efforts in its principal businesses. The transaction is expected to close in the third quarter of calendar year 2020 and is subject to the satisfaction of customary closing conditions. In connection with the entry into the Composites Sale Agreement, we anticipate recognizing an impairment charge of approximately $20 million in the first quarter of fiscal 2021. The impairment charge reduces the net assets of Composites to the estimated net proceeds we expect to receive, which is comprised of both cash received at closing of the transaction and the fair value of contingent consideration related to achievement of sales targets for Composites over the next three years.

Sale of Composites Business

12 Months Ended

May 31, 2020

16. Sale of Composites Business

On June 23, 2020, we entered into an asset purchase agreement (the “Composites Sale Agreement”) for the sale of our aerostructures and aerospace products operations located in Clearwater, Florida and Sacramento, California (the “Composites”). The sale of Composites is consistent with our multi-year strategy to focus our portfolio on our core services offerings and the transaction will allow the Company to further prioritize its efforts in its principal businesses. The transaction is expected to close in the third quarter of calendar year 2020 and is subject to the satisfaction of customary closing conditions.

In connection with the entry into the Composites Sale Agreement, we anticipate recognizing an impairment charge of approximately $20 million in the first quarter of fiscal 2021. The impairment charge reduces the net assets of Composites to the estimated net proceeds we expect to receive, which is comprised of both cash received at closing of the transaction and the fair value of contingent consideration related to achievement of sales targets for Composites over the next three years.