ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Jun. 30, 2016

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

3. ACQUISITIONS AND DISPOSITIONS

Acquisitions

Acquisitions during the first six months of 2016 and all of 2015 were not material to the company’s consolidated financial statements. The aggregate purchase price of acquisitions has been reduced for any cash or cash equivalents acquired with the acquisitions. Based upon purchase price allocations, the components of the aggregate purchase prices of completed acquisitions and immaterial purchase price adjustments during the second quarter and first six months of 2016 and 2015 are shown in the following table.

	Second Quarter Ended				Six Months Ended
	June 30				June 30
(millions)	2016		2015		2016		2015
Net tangible assets acquired		$ (2.9)		$ 2.4		$ 10.7		$ 3.5
Identifiable intangible assets
Customer relationships		-		2.0		2.5		2.6
Patents		-		-		-		2.5
Trademarks		-		-		-		0.1
Other technology		-		-		-		0.2
Total intangible assets		-		2.0		2.5		5.4
Goodwill		2.7		0.4		3.9		6.7
Total aggregate purchase price		(0.2)		4.8		17.1		15.6
Acquisition related liabilities and contingent consideration		1.2		-		(4.3)		(0.1)
Net cash paid for acquisitions, including acquisition related
liabilities and contingent consideration		$ 1.0		$ 4.8		$ 12.8		$ 15.5

Amounts within the 2016 columns of the previous table, including acquisition related liabilities, primarily relate to the purchase of certain assets of Keedak Limited, an oilfield chemical distributor in Nigeria, final purchase price allocations for the Jianghai Environmental Protection Co. Ltd acquisition, which was acquired in June 2015, and payments of settled liabilities from previous transactions.

Amounts within the 2015 columns of the previous table primarily relate to the acquisitions of Clariant AG, Aseptix Health Sciences NV and Commercial Pest Control Pty Ltd.

The weighted average useful lives of identifiable intangible assets acquired during the first six months of 2016 and 2015, as shown in the previous table, were 5 and 9 years, respectively.

Subsequent Event Activity

In June 2016, subsequent to the company’s fiscal second quarter end for international operations, the company made a binding offer to acquire Laboratoires Anios (“Anios”), a leading European manufacturer and marketer of hygiene and disinfection products for the healthcare, food service, and food and beverage processing industries. Based in Lille, France, Anios sales were approximately €220 million ($245 million) in 2015. The parties entered into a definitive purchase agreement in July 2016 following the sellers’ consultation with their French works councils. The transaction remains subject to clearance by applicable regulatory and competition authorities prior to closing. The transaction is expected to close in late 2016, subject to satisfaction of such contingencies.

In July 2016, the company made a 33% minority investment in Aquatech International LLC (“Aquatech”). Based in Canonsburg, PA, Aquatech is a global leader in the design and engineering of complex and comprehensive water treatment solutions that improve water quality and reduce net water usage. The company determined that it exerts significant influence over Aquatech and therefore will account for the investment using the equity method of accounting.

Dispositions

There were no business dispositions during the first six months of 2016.

In June 2015, the company sold a portion of its Ecovation business, resulting in a loss of $13.7 million ($8.6 after tax), recorded in special (gains) and charges. The business was part of the company’s Global Industrial reportable segment.