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ACQUISITIONS
3 Months Ended
Mar. 31, 2020
ACQUISITIONS  
ACQUISITIONS

NOTE 4—Acquisitions

Business combinations

Well Chemical Services Acquisition

On September 30, 2019, the Company acquired a well chemical services business (“WCS”), formerly a division of Baker Hughes Company, for $10.0 million, funded with cash on hand (the “WCS Acquisition”). WCS provides advanced water treatment solutions, specialized stimulation flow assurance and integrity additives and post-treatment monitoring service in the U.S. This acquisition expands the Company’s service offerings in oilfield water treatment across the full life-cycle of water, from pre-fracturing treatment through reuse and recycling.

The WCS Acquisition was accounted for as a business combination under the acquisition method of accounting. When determining the fair values of assets acquired and liabilities assumed, management made significant estimates, judgments and assumptions. These estimates, judgments and assumptions and valuation of the inventory and property and equipment acquired, customer relationships, and current liabilities were finalized as of December 31, 2019. The assets acquired and liabilities assumed are included in the Company’s Oilfield Chemicals segment. The following table summarizes the consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition:

Purchase price allocation

    

Amount

Consideration transferred

 

(in thousands)

Cash paid

$

10,000

Total consideration transferred

 

10,000

Less: identifiable assets acquired and liabilities assumed

 

  

Inventory

 

5,221

Property and equipment

 

4,473

Customer relationships

 

476

Current liabilities

(170)

Total identifiable net assets acquired

 

10,000

Fair value allocated to net assets acquired

$

10,000