Acquisitions Acqusitions

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Acquisitions

Acquisitions

AMI Acquisition

In the third quarter of 2016, the Company acquired the North American fuel and brake business of AMI Industries for cash consideration of $32,000 (the “AMI Acquisition”). This acquisition directly aligns with the Company's growth strategy by expanding the Company's fuel and brake business. The results of operations of the North American fuel and brake business of AMI Industries are included in the Company's condensed consolidated financial statements from the date of acquisition, August 15, 2016, and reported within the North American segment. This acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, resulting in the recognition of goodwill of $7,175 in the third quarter of 2016. Also in the third quarter of 2016, the Company agreed to purchase the China fuel and brake business of AMI Industries, which is subject to regulatory approval and is expected to close in the first quarter of 2017.

Shenya Acquisition

In the first quarter of 2015, the Company completed the acquisition of an additional 47.5% of Huayu-Cooper Standard Sealing Systems Co. (“Shenya”), increasing its ownership to 95%, for cash consideration of $59,320 of which $34,396 was paid in the nine months ended September 30, 2015. The business acquired in the transaction is operated from Shenya’s manufacturing locations in China. Shenya primarily supplies sealing systems and components to the automotive industry. This acquisition is directly aligned with the Company’s growth strategy by strengthening important customer relationships in the automotive sealing systems market. The results of operations of Shenya are included in the Company’s condensed consolidated financial statements from the date of acquisition, February 27, 2015, and reported within the Asia Pacific segment. Prior to the acquisition, the Company held a 47.5% unconsolidated equity interest in Shenya. The estimated fair value of the equity interest at the date of acquisition was $41,378, resulting in a gain of $14,199 recorded in other (expense) income, net for the nine months ended September 30, 2015.

In the second quarter of 2016, the Company acquired a business in furtherance of the Company's Shenya operations. The total purchase price of the acquisition was $5,478, of which the Company made a deposit of $3,020 during the first quarter of 2016 and issued a note payable for $2,458 in the second quarter of 2016, which was subsequently paid during July 2016. The Company recognized $2,972 of goodwill as a result of this acquisition in the second quarter of 2016.

In the third quarter of 2016, the Company obtained control of its 51%-owned joint venture, Shenya Sealing (Guangzhou) Company Limited (“Guangzhou”) through an amendment of the joint venture governing document. This joint venture was previously accounted for as an investment under the equity method. The results of operations of Guangzhou are included in the Company's condensed consolidated financial statements from the date of consolidation, August 4, 2016, and reported within the Asia Pacific segment. Business combination accounting was completed on a preliminary basis using information available, resulting in the recognition of goodwill of $10,869 in the third quarter of 2016. There was no gain or loss recognized on the remeasurement of the Company's equity method investment in Guangzhou for the three months ended September 30, 2016.