Acquisitions

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Acquisitions

Note 3 - Acquisitions

The Company completed one acquisition in 2020. On November 30, 2020, the Company completed the acquisition of the assets of Aurora Bearing Company ("Aurora"). With annual sales of approximately $30 million, Aurora serves a diverse range of industrial sectors, including aerospace and defense, racing, off-highway equipment and packing. Aurora is headquartered in Montgomery, Illinois. The total purchase price for this acquisition was $17.3 million, including a post-closing net working capital adjustment. Based on markets and customers served, results for Aurora are reported in both the Mobile Industries segment and the Process Industries segment.

The following table presents the purchase price allocation at fair value, net of cash acquired, for the Aurora acquisition as of March 31, 2021: 

	Initial Purchase Price Allocation		Adjustments		Purchase Price Allocation
Assets:
Accounts receivable, net	$	2.7	$	—	$	2.7
Inventories, net	16.4		—		16.4
Other current assets	0.1		0.2		0.3
Property, plant and equipment, net	10.9		—		10.9
Total assets acquired	$	30.1	$	0.2	$	30.3
Liabilities:
Accounts payable, trade	$	0.8	$	—	$	0.8
Other current liabilities	0.9		(0.4)		0.5
Total liabilities assumed	1.7		(0.4)		1.3
Net assets acquired	$	28.4	$	0.6	$	29.0

As a result of applying the accounting rules on business combinations, the Company recognized a bargain purchase gain of $11.7 million on the acquisition of Aurora. The Company recognized $0.6 million of the bargain purchase price gain during the first three months of 2021 primarily due to the working capital adjustment. The Company believes it was able to negotiate a bargain purchase price for the business due to some historic operational performance challenges, as well as the seller's desire to exit the business in an expedited manner in an exclusive process with the Company.