Business Combinations, Asset Acquisitions, and Joint Venture Formation

3 Months Ended

Nov. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Combination Disclosure

Note 5.    Acquisitions

On September 4, 2024, the Company acquired 100% of the stock of DTA The Smart Move, S.A. ("DTA"), a global leader in the industrial heavy loads transportation industry, designing and manufacturing mobile robotic solutions. The acquisition provides a complement to Enerpac's Heavy Lifting Technology product line and combines the Company's existing focus on vertical lift with DTA's specialization in horizontal movement enabling the Company to provide more comprehensive solutions for customers. The Company acquired all of the assets and assumed certain liabilities of DTA for an initial purchase price of $27.2 million plus potential earn-out to be paid at the end of the third year following the acquisition that is tied to the achievement of certain financial objectives with a maximum total purchase price of €36.0 million. The acquisition was funded with both cash on hand and borrowings from our existing credit facility. Due to the timing of the business combination and the nature of the net assets acquired, at November 30, 2024, the valuation process to determine the fair value is not complete and further adjustments are expected. The Company has estimated the preliminary fair value of net assets acquired based on information currently available and will continue to adjust those estimates as additional information becomes available. At November 30, 2024 the company recognized $22.0 million of goodwill and $3.0 million of property, plant and equipment as part of this acquisition. A fair value estimate has not yet been recorded for the earn-out or for identifiable intangible assets, as sufficient information is not yet available to make reliable estimates. The entire difference between the initial purchase price and the estimate of the fair value of tangible net assets is currently recorded in goodwill. As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price allocation adjustments will be recorded

during the measurement period, but not to exceed 12 months following acquisition date. Adjustments in purchase price allocations may require a change in the amounts allocated to net assets acquired during the periods in which the adjustments are determined.

This acquisition generated net sales of $3.2 million for the three months ended November 30, 2024, which are reported within the IT&S reportable segment. This acquisition does not meet the significance tests to require pro forma financial information otherwise required for acquisitions.