ACQUISITIONS

12 Months Ended

Dec. 31, 2016

ACQUISITIONS [Abstract]

ACQUISITIONS

2. ACQUISITIONS

On January 30, 2015, IPG acquired all of the outstanding equity interests of the Plant Equipment Group (“PEG”) from TAKKT America, a business-to-business direct marketer of maintenance, repair and operations (“MRO”) products with operations in North America for approximately $25.9 million in cash. This acquisition expanded the IPG segment presence in the MRO market in North America. The acquisition is considered an asset acquisition for tax purposes and as such, the goodwill resulting from this acquisition is tax deductible. The total associated transaction costs of the acquisition were $0.4 million and were recorded in selling, general and administrative expense. The acquisition was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and the liabilities assumed be recognized at their fair values as of the acquisition date.

The following table summarizes the fair value of the assets acquired and liabilities assumed (in millions):

Purchase price	$	25.9
Less:
Cash		1.1
Accounts receivable		10.0
Inventory		11.8
Fixed assets		1.2
Prepaid expenses		0.6
Leases, net		0.8
Client lists		2.1
Trademarks		4.1
Accounts payable		(7.5	)
Accrued expenses		(3.7	)
Other liabilities		(0.2	)
Goodwill	$	5.6

The amount allocated to goodwill reflects the benefits the Company expects to realize from the growth of the acquisition’s operations.

For the twelve months ended December 31, 2015, PEG generated approximately $89.1 million in revenue and approximately $1.1 million of pretax income. In January 2016 PEG was fully integrated with the existing IPG segment.

The Company’s unaudited pro forma revenue and net loss from continuing operations for the years ended December 31, 2015 and 2014 below have been prepared as if PEG had been purchased on January 1, 2014 (in millions).

	Unaudited Pro Forma
	2015				2014
Revenue		$	1,861.5			$	2,204.4
Net loss from continuing operations		$	(48.3	)		$	(32.4	)

The unaudited pro forma financial information above is not necessarily indicative of what the Company’s consolidated results actually would have been if the acquisitions had been completed at the beginning of the respective periods. In addition, the unaudited pro forma information above does not attempt to project the Company’s future results.