Note

Acquisitions

Adecol

November 1, 2017,

we acquired Adecol Industria Quimica, Limitada (“Adecol”), headquartered in Guarulhos, Brazil. Adecol works with customers to develop innovative, high-quality hot melt, reactive and polymer-based adhesive solutions in the packaging, converting and assembly markets. The acquisition is expected to enhance our business in Brazil by partnering with customers to produce new and better consumer and durable goods products in this region. The purchase price was

145.9

million Brazilian real, or approximately

$44,682,

and was funded through borrowings on our revolving credit facility and existing cash. Adecol is reported in our Americas Adhesives operating segment.

The acquisition fair value measurement was preliminary as of

June 2, 2018,

subject to the completion of the valuation of Adecol and further management reviews and assessment of the preliminary fair values of the assets acquired and liabilities assumed. We expect the fair value measurement process to be completed when the final appraisals are available, but

later than

twelve

months from the acquisition date.

The following table summarizes the preliminary fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:

	December 2, 2017			Adjustments			June 2, 2018
Current assets	$	17,877		$	(1,131	)	$	16,746
Property, plant and equipment		7,308			302			7,610
Goodwill		23,282			651			23,933
Other intangibles
Customer relationships		17,016			(383	)		16,633
Trademarks/trade names		1,363			(65	)		1,298
Other assets		4,811			-			4,811
Current liabilities		(12,765	)		291			(12,474	)
Other liabilities		(14,210	)		335			(13,875	)
Total purchase price	$	44,682		$	-		$	44,682

The preliminary expected lives of the acquired intangible assets are

years for customer relationships and

five

years for trademarks/trade names.

Based on the preliminary fair value measurement of the assets acquired and liabilities assumed, we allocated

$23,933

to goodwill for the expected synergies from combining Adecol with our existing business. Such goodwill is

not

deductible for tax purposes. The goodwill was assigned to our Americas Adhesives operating segment.

Royal Adhesives

October 20, 2017,

we acquired Royal Adhesives and Sealants (“Royal Adhesives”), a manufacturer of high-value specialty adhesives and sealants. Royal Adhesives is a supplier of industrial adhesives in a diverse set of end markets, including aerospace, transportation, commercial roofing, insulating glass, solar, packaging and flooring applications and operates

manufacturing facilities in

five

countries. The acquisition is expected to expand our presence in North America, Europe and China and add new technology and packaging capabilities. The purchase price of

$1,622,728

was funded through new debt financing. Royal Adhesives is included in multiple operating segments. See Note

for further information on the change to our operating segments for the Royal Adhesives acquisition.

The acquisition fair value measurement was preliminary as of

June 2, 2018,

subject to the completion of the valuation of Royal Adhesives and further management reviews and assessment of the preliminary fair values of the assets acquired and liabilities assumed. We expect the fair value measurement process to be completed when the final appraisals are available, but

later than

twelve

months from the acquisition date.

The following table summarizes the preliminary fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:

	December 2, 2017			Adjustments			June 2, 2018
Accounts receivable	$	64,904		$	278		$	65,182
Inventory		93,680			372			94,052
Other current assets		58,508			505			59,013
Property, plant and equipment		126,192			(6,055	)		120,137
Goodwill		866,013			9,109			875,122
Other intangibles
Developed technology		59,800			(300	)		59,500
Customer relationships		645,300			(6,500	)		638,800
Trademarks/trade names		53,600			(300	)		53,300
Other assets		1,443			(33	)		1,410
Accounts payable		(40,211	)		1,476			(38,735	)
Other current liabilities		(37,261	)		(1,318	)		(38,579	)
Other liabilities		(269,240	)		2,766			(266,474	)
Total purchase price	$	1,622,728		$	-		$	1,622,728

The preliminary expected lives of the acquired intangible assets are

years for developed technology,

years for customer relationships and

years for trademarks/trade names.

Based on the preliminary fair value measurement of the assets acquired and liabilities assumed, we allocated

$875,122

to goodwill for the expected synergies from combining Royal Adhesives with our existing business. The goodwill was assigned to multiple operating segments. The amount of goodwill that is deductible for tax purposes is

$38,275.

The remaining goodwill is

not

deductible for tax purposes.

Wisdom Adhesives

January 27, 2017,

we acquired substantially all of the assets of H.E. Wisdom & Sons, Inc. and its affiliate Wisdom Adhesives Southeast, L.L.C., (“Wisdom Adhesives”) headquartered in Elgin, Illinois. Wisdom Adhesives is a provider of adhesives for the packaging, paper converting and durable assembly markets. The acquisition is expected to strengthen our position in the North America adhesives market. The purchase price of

$123,549

was financed through borrowings on our revolving credit facility and is reported in our Americas Adhesives operating segment. We incurred acquisition related costs of approximately

$547,

which were recorded as selling, general and administrative (SG&A) expenses in the Condensed Consolidated Statement of Income for the

six

months ended

June 3, 2017.

The following table summarizes the final fair value measurement of the assets acquired and liabilities assumed as of the acquisition date:

	December 2, 2017
Current assets	$	13,844
Property, plant and equipment		8,641
Goodwill		59,826
Other intangibles
Customer relationships		45,300
Trademarks/trade names		4,400
Current liabilities		(8,462	)
Total purchase price	$	123,549

The expected lives of the acquired intangible assets are

years for customer relationships and

years for trademarks/trade names.

Based on the fair value measurement of the assets acquired and liabilities assumed, we allocated

$59,826

to goodwill for the expected synergies from combining Wisdom Adhesives with our existing business. Such goodwill is deductible for tax purposes. The goodwill was assigned to our Americas Adhesives operating segment.