Business Acquisitions

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Business Acquisitions

Business Acquisitions

In the first quarter of 2017, the Company completed two acquisitions for $9.3 million, net of cash received, resulting in the recognition of intangible assets of $3.4 million and goodwill of $4.0 million (See Note 5 – Goodwill and Intangible Assets, net for additional information). The $3.4 million of intangible assets consists primarily of customer relationships and trade names that will be amortized over a weighted average period of approximately 12 years. These acquisitions have been added to the Power segment and $2.4 million of the goodwill is currently expected to be deductible for tax purposes.

These business acquisitions have been accounted for as business combinations and have resulted in the recognition of goodwill. The goodwill relates to a number of factors built into the purchase price, including the future earnings and cash flow potential of the businesses as well as the complementary strategic fit and resulting synergies they bring to the Company’s existing operations.

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the dates of acquisition related to these transactions that were completed in the first quarter of 2017 (in millions):

Tangible assets acquired	$	3.1
Intangible assets	3.4
Goodwill	4.0
Other liabilities assumed	(1.2		)
TOTAL CONSIDERATION, NET OF CASH RECEIVED	$	9.3

The allocation of purchase price is based on preliminary estimates and assumptions, and is subject to revision based on final information received and other analysis that support the underlying estimates. We expect to complete our purchase accounting within the measurement period for each acquisition.

The Condensed Consolidated Financial Statements include the results of operations of the entities acquired in the first quarter of 2017 from the date of acquisition. Net sales and earnings related to these acquisitions for the three months ended March 31, 2017 were not significant to the consolidated results. Pro forma information related to these acquisitions has not been included because the impact to the Company’s consolidated results of operations was not material.

Cash used for the acquisition of businesses, net of cash acquired as reported in the Consolidated Statement of Cash Flows for the three months ended March 31, 2017, is $19.2 million and includes payments associated with a 2016 acquisition for which the purchase price is due to be settled in installments.

In April 2017, the Company completed two additional acquisitions for an aggregate purchase price of approximately $90 million. The Company acquired substantially all of the assets of Advance Engineering Corporation and Perfect Pipe & Supply Corporation (collectively "AEC") for approximately $30 million. AEC is a gas components manufacturer that complements the Company's existing business in the natural gas distribution vertical. AEC joins the Company's recent acquisitions of GasBreaker and Lyall to bolster its main-to-meter mechanical solutions in this area. The Company also acquired all of the issued and outstanding limited liability company interests in iDevices, LLC ("iDevices") for approximately $60 million. iDevices is a developer with embedded firmware and application development expertise with custom-built Internet of Things ("IoT") Cloud infrastructure. The iDevices acquisition adds capabilities and expertise in IoT technology that is required to provide Tier 3 energy management solutions via connected hardware with a software front-end. These subsequent acquisitions are not recognized in the Condensed Consolidated Financial Statements as of March 31, 2017.