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Acquisitions
12 Months Ended
Jul. 31, 2018
Business Combinations [Abstract]  
Acquisitions
Acquisitions
On May 1, 2017, the Company acquired 100% of the shares of Hy-Pro Corporation (Hy-Pro). Hy-Pro designs and manufactures filtration systems and replacement filters for stationary hydraulic and industrial lubrication applications. Hy-Pro has manufacturing locations in Anderson, Indiana and Vancouver, Washington. Total consideration for the transaction was $21.9 million after recording a working capital adjustment in accordance with the purchase agreement. The Company received cash of $0.8 million for this adjustment during fiscal 2018, which reduced the purchase price and goodwill by a corresponding amount.
On August 31, 2016, the Company acquired the net assets of Industrias Partmo S.A. (Partmo) in Colombia. Partmo is a leading manufacturer of replacement air, lube and fuel filters in Colombia for medium and heavy duty engines. The total consideration for the transaction was $12.1 million.
For the two acquisitions that occurred in fiscal 2017, the Company acquired $18.1 million of net tangible assets, $8.6 million of intangible assets that had estimated useful lives ranging from seven to twenty years at the time of acquisition and $7.3 million of goodwill.
On August 31, 2015, the Company acquired 100% of the shares of Engineered Products Company (EPC), a leading designer and manufacturer of indicators, gauges, switches and sensors for engine air and liquid filtration systems.
Pro forma financial information for these acquisitions have not been presented because they are not material to the Company's consolidated results of operations.
On September 11, 2018, the Company announced that it entered into an agreement to acquire 88% of the shares of BOFA International LTD (BOFA), headquartered in the United Kingdom, for approximately £79 million. The agreement also provides call and put options that, if exercised by either the Company or the sellers of BOFA, would obligate the Company to purchase the remaining 12% of the shares of BOFA at a price indexed to the performance of the acquired entity. BOFA designs, develops and manufactures fume extraction systems across a wide range of industrial air filtration applications and expects to generate sales of approximately $40 million in its current fiscal year. The acquisition will allow Donaldson to accelerate BOFA’s global growth in the fume collection business and add additional filtration technology to their products. The acquisition is expected to close in the first quarter of fiscal 2019, subject to customary closing conditions. Once the transaction is complete, Donaldson will report revenue from the acquisition of BOFA within the Industrial Products segment.