Acquisitions

3 Months Ended

Mar. 31, 2016

Acquisitions

Acquisitions

3.  Acquisition

2016 Acquisition

On January 1, 2016, we acquired Tubular Steel, Inc. (“Tubular Steel”), a distributor and processor of carbon, alloy and stainless steel pipe, tubing and bar products. Tubular Steel, headquartered in St. Louis, Missouri, has seven locations and a fabrication business that supports its diverse customer base. This acquisition was funded with borrowings on our revolving credit facility. For the first quarter of 2016, Tubular Steel’s net sales were approximately $29.8 million.

The preliminary allocation of the total purchase price of Tubular Steel to the fair values of the assets acquired and liabilities assumed was as follows:

	(in millions)
Cash	$	0.2
Accounts receivable		10.6
Inventories		57.6
Property, plant and equipment		43.4
Goodwill		96.0
Intangible assets subject to amortization		61.7
Intangible assets not subject to amortization		27.3
Other current and long-term assets		0.1
Total assets acquired		296.9
Other current and long-term liabilities		5.8
Net assets acquired	$	291.1

The acquisition discussed in this note has been accounted for under the acquisition method of accounting and, accordingly, the respective purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition. The accompanying consolidated statement of income includes the revenues and expenses of the acquisition since its acquisition date.  The consolidated balance sheet reflects the allocation of the acquisition’s purchase price as of March 31, 2016. The purchase price allocation for the acquisition is preliminary and is pending the completion of certain purchase price adjustments based on tangible and intangible asset valuations and various pre-acquisition period income tax returns. The measurement period for the purchase price allocation does not exceed 12 months from the acquisition date.