ACQUISITIONS Acquisitions (Notes)

9 Months Ended

Sep. 30, 2020

Business Combination Disclosure [Text Block]

ACQUISITIONS

Rheinhütte Pumpen Group (Rheinhütte)

On April 30, 2019, we completed the acquisition of 100% of the privately held stock of Rheinhütte for a purchase price of €82.5 euros, net of cash acquired. The transaction was funded from the Company’s cash and European commercial paper program. Rheinhütte, with 2018 revenue of approximately €61.5 euros and approximately 430 employees, has manufacturing locations in Germany and Brazil. Rheinhütte is a designer and manufacturer of highly engineered pumps suited for harsh and corrosive environments for the industrial market. Rheinhütte is reported within the Industrial Process segment.

Matrix Composites, Inc. (Matrix)

On July 3, 2019, we completed the acquisition of 100% of the privately held stock of Matrix for a purchase price of $25.8, net of cash acquired. The transaction was funded from the Company’s cash. Matrix, a manufacturer of precision composite components within the aerospace and defense market, had 2018 revenue of approximately $12 with growth expected due to a ramp up in production on several next-generation aircraft engine platforms. Matrix has approximately 115 employees and is reported within the Connect & Control Technologies segment.

The final purchase prices for Rheinhütte and Matrix were allocated to net assets acquired and liabilities assumed based on their fair values as of the respective acquisition date, with the excess of the purchase price of $37.6 and $14.3 recorded as goodwill, respectively. Other intangibles identified for Rheinhütte include customer relationships, proprietary technology and trade names. Other intangibles assets for Matrix consist of customer relationships. The goodwill arising from these acquisitions is not expected to be deductible for income tax purposes.

Allocations of Purchase Price


	Rheinhütte		Matrix
Cash	$	4.7	$	0.5
Receivables	12.1		1.1
Inventory	15.2		1.8
Plant, property and equipment	19.9		2.9
Goodwill	37.6		14.3
Other intangible assets	15.2		8.5
Other assets	3.8		1.9
Accounts payable and accrued liabilities	(6.7)		(2.0)
Other liabilities	(5.3)		(2.7)
Net assets acquired	$	96.5	$	26.3

Pro forma results of operations have not been presented because the acquisitions were not deemed material as of the acquisition dates.