Acquisitions

3 Months Ended

Apr. 01, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

Subsequent to the end of the first quarter of 2023, in April 2023, we entered into an agreement to acquire LG Group, Inc. ("Lion Brothers"), a Maryland-based designer and manufacturer of apparel brand embellishments. We believe this acquisition will expand the product portfolio in our Solutions Group reportable segment. We expect to complete this acquisition in the second quarter of 2023.

On March 6, 2023, we completed our business acquisition of Thermopatch, Inc. ("Thermopatch"), a New York-based manufacturer specializing in labeling, embellishments and transfers for the sports, industrial laundry, workwear and hospitality industries. We believe this acquisition will expand the product portfolio in our Solutions Group reportable segment. The purchase consideration for this acquisition was approximately $44 million, which we funded using cash and commercial paper borrowings.

The final allocation of Thermopatch purchase consideration to assets and liabilities is ongoing as we continue to evaluate certain balances, estimates and assumptions during the measurement period (up to one year from the acquisition date). Consistent with the allowable time to complete our assessment, the valuation of certain acquired assets and liabilities, including tangible and intangible assets, environmental liabilities and income taxes, is currently pending finalization.

The Thermopatch acquisition was not material to the unaudited Condensed Consolidated Financial Statements.