Business Combinations, Asset Acquisitions, and Joint Venture Formation

6 Months Ended

Feb. 28, 2025

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

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 of €12.0 million 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. At February 28, 2025, the Company preliminarily recorded a liability of €2.3 million related to the potential earn-out payment and recognized $15.0 million of intangible assets made up of amortizable assets including $1.6 million in tradenames amortizable over three years, $3.6 million in customer relationship and $9.8 million in developed technology both amortizable over fourteen years.

The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded to goodwill. The preliminary value of the assets acquired and liabilities assumed as of acquisition date were as follows (in thousands):


Current assets	$	6,464
Property, plant and equipment	2,841
Intangible assets	14,977
Goodwill	14,473
Long term assets	531
Total assets acquired	39,286

Current liabilities	(6,531)
Long term liabilities	(5,559)
Net assets acquired	$	27,196

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 and $6.4 million for the three and six months ended February 28, 2025, which are reported within the IT&S reportable segment.