Note 2 - Acquisitions

12 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

2. Acquisitions

In July 2012, the Company acquired Meder electronic AG (“Meder”), a German manufacturer of magnetic reed switch, reed relay, and reed sensor products. Meder, whose products and geographic markets are complementary to Standex Electronics, is reported under the Electronics Products Group. This investment substantially broadens the global footprint, product line offerings, and end-user markets of the Electronics segment.

The Company paid $43.2 million in cash for 100% of the equity of Meder. Acquired intangible assets of $8.2 million consist of $3.4 million of trademarks, which are indefinite-lived, and $4.8 million of customer relationships, which are expected to be amortized over a period of 10 years. Acquired goodwill of $12.1 million is not deductible for income tax purposes due to the nature of the transaction. The Company finalized the purchase price allocation during the quarter ended December 31, 2012.

The components of the fair value of the Meder acquisition, including the initial allocation of the purchase price and subsequent measurement period adjustments, are as follows (in thousands):

	Preliminary Allocation			Adjustments			Meder Electronic
Fair value of business combination:
Cash payments	$	42,103		$	1,078		$	43,181
Less: cash acquired		(3,568	)		-			(3,568	)
Total	$	38,535		$	1,078		$	39,613
Identifiable assets acquired and liabilities assumed
Current Assets	$	20,246		$	-		$	20,246
Property, plant, and equipment		10,651			409			11,060
Identifiable intangible assets		8,200			-			8,200
Goodwill		11,131			932			12,063
Other non-current assets		222			-			222
Liabilities Assumed		(8,682	)		40			(8,642	)
Deferred taxes		(3,233	)		(303	)		(3,536	)
Total	$	38,535		$	1,078		$	39,613

In March 2011, the Company acquired Metal Spinners Group, Ltd. (“Metal Spinners”), a U.K.-based metal fabrication supplier. Metal Spinners, which uses technology similar to Spincraft, is reported under the Engineering Technologies Group. The acquisition provides the Company with access to new end-user and geographic markets in the medical, general industrial and oil and gas markets in the U.S., U.K., Europe, and China.

The Company paid $23.9 million in cash for 100% of the equity of Metal Spinners. Acquired intangible assets of $5.7 million consist entirely of customer relationships, which are expected to be amortized over a weighted average period of 8.66 years.

The components of the fair value of the Metal Spinners acquisition and final allocation reported at June 30, 2011 are as follows (in thousands):

	Metal Spinners Group
Fair value of business combination:
Cash payments	$	23,887
Less: cash acquired		(1,652	)
Total	$	22,235
Identifiable assets acquired and liabilities assumed
Current assets	$	5,349
Property, plant, and equipment		6,534
Identifiable intangible assets		5,727
Goodwill		11,288
Deferred taxes		(2,837	)
Liabilities assumed		(3,826	)
Total	$	22,235

Subsequent to acquisition, revenues and earnings for Metal Spinners in 2011 were $6.4 million and $0.2 million, respectively. Included in earnings are $0.7 million of purchase accounting-related expenses.

Other 2011 Acquisitions

The Company made three additional acquisitions during 2011 – two in the Engraving Group and one in the Food Service Equipment Group. Total consideration transferred in the aggregate for these acquisitions was $4.7 million. Acquired intangible assets of $1.6 million consist of $1.0 million of amortizing intangible assets expected to be amortized over a weighted average period of 12.38 years.

The components of the fair value of other 2011 acquisitions and the final allocation of their purchase price are as follows (in thousands):

	Other
Fair value of business combination:
Cash payments	$	4,368
Deferred consideration		350
Total	$	4,718
Identifiable assets acquired and liabilities assumed
Current assets	$	1,705
Property, plant, and equipment		518
Identifiable intangible assets		1,619
Goodwill		1,368
Liabilities assumed		(492	)
Total	$	4,718