Acquisitions And Divestitures

12 Months Ended

Dec. 31, 2017

Acquisitions And Divestitures [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

In January 2018, the Company completed the acquisition of Crane & Co., Inc. (“Crane Currency”), a supplier of banknotes and highly engineered banknote security features. See Note 16, “Subsequent Events,” in the Notes to Consolidated Financial Statements.

In April 2017, the Company acquired all of the outstanding stock of Westlock Controls (“Westlock”) from Emerson Electric Co. for cash consideration of $40.0 million. Westlock is a global leader in the manufacturing and sale of switchboxes, position transmitters and other solutions for networking, monitoring and controlling process valves, a new product space which is closely adjacent to the Company’s existing operations in its Fluid Handling segment. With primary operations located in Saddle Brook, New Jersey, Westlock had 2016 sales of approximately $32.0 million. Allocation of the purchase price resulted in the Company recording goodwill of $22.6 million. Acquisition-related costs are being expensed as incurred. For the year ended December 31, 2017, the Company recorded $2.0 million of transaction costs. This acquisition has been integrated into the Company’s Fluid Handling segment, and the pro-forma impact is not material.

In June 2017, the Company acquired all of the outstanding stock of Microtronic AG (“Microtronic”) for cash consideration of approximately $18.0 million. With operations in Oensingen, Switzerland, Microtronic develops and manufactures closed electronic payment systems, primarily for the European vending market, strengthening the Company’s portfolio of cashless solutions. Allocation of the purchase price resulted in the Company recording goodwill of $8.9 million. Acquisition-related costs are being expensed as incurred. For the year ended December 31, 2017, the Company recorded $1.0 million of transaction costs. This acquisition has been integrated into the Company’s Payment & Merchandising Technologies segment, and the pro-forma impact is not material.

In December 2017, the Company sold a portion of an investment in a joint venture of which the Company's ownership interest was 70% within the Fluid Handling segment for $14.1 million. As of December 31, 2017, the Company's ownership interest in this joint venture was 4.9%. The sale resulted in the deconsolidation of such business and a gain in the amount of $1.0 million ($0.7 million after-tax) in 2017, of which $0.9 million was attributable to the remeasurement of the remaining investment. The fair value of the remaining investment in the joint venture of $2.3 million was established by discounting estimated future cash flows at an estimated cost of capital of 10% reflecting the respective inherent business risk of the joint venture arrangement, commonly referred to as the Income Method. The total gain is included in Miscellaneous expense.