ACQUISITIONS

9 Months Ended

Sep. 30, 2024

ACQUISITIONS

ACQUISITIONS

4. ACQUISITIONS

Acquisitions

The Company makes business acquisitions that align with its strategic business objectives. The assets and liabilities of acquired businesses are recorded in the Consolidated Balance Sheets based on estimates of the fair value of assets acquired, liabilities assumed and noncontrolling interests acquired as of the acquisition date. Goodwill is recognized in the amount that the purchase consideration paid exceeds the fair value of the net assets acquired. Purchase consideration includes both cash paid and the fair value of noncash consideration exchanged, including stock and/or contingent consideration, and is reduced by the amount of cash or cash equivalents acquired.

In May and September 2024, the Company completed two immaterial acquisitions both of which became part of the Global Pest Elimination reporting segment.

The purchase accounting for these acquisitions is preliminary and subject to change as the Company finalizes the valuation of intangible assets, income tax balances and working capital. The Company expects the goodwill arising from the acquisitions to be tax deductible.

In May 2023, the Company acquired Chemlink Laboratories LLC, a U.S.-based producer of small format cleaning solutions. The Company made two other immaterial acquisitions during the second quarter of 2023. All three acquisitions became part of the Global Institutional & Specialty reporting segment. The purchase accounting for these acquisitions were finalized in the second quarter of 2024.

The following table summarizes the acquisition date fair value of net assets acquired from the Company’s acquisitions during the first nine months of 2024 and 2023:

	Nine Months Ended
	September 30
(millions)	2024		2023
Net tangible assets (liabilities) acquired		$2.0		$9.8
Identifiable intangible assets
Customer relationships		18.3		35.5
Trademarks		1.8		-
Other technology		1.6		21.8
Total intangible assets		21.7		57.3
Goodwill		33.6		40.5
Total aggregate purchase price		57.3		107.6
Acquisition-related liabilities and contingent consideration		(3.2)		(5.3)
Net cash paid for acquisitions, including acquisition-related
liabilities and contingent consideration		$54.1		$102.3

During the first nine months of 2024, the Company recorded adjustments associated with the finalization of the purchase accounting for its 2023 acquisitions and purchase accounting adjustments for its 2024 acquisitions. As a result of these purchase accounting adjustments, the Company made $3.3 million of acquisition-related payments, acquisition-related net liabilities decreased by $3.6 million, net tangible assets acquired decreased by $2.1 million, definite-lived intangibles increased by $1.0 million and goodwill increased by $0.8 million.

The weighted average useful life of identifiable intangible assets acquired during the first nine months of 2024 and 2023 were 9 years and 12 years, respectively.