ACQUISITIONS

6 Months Ended

Jun. 30, 2023

ACQUISITIONS

ACQUISITIONS

3. ACQUISITIONS

Acquisitions

The Company makes business acquisitions that align with its strategic business objectives. The assets and liabilities of acquired businesses are recorded in the Consolidated Balance Sheets based on estimates of the fair value of assets acquired, liabilities assumed and noncontrolling interests acquired as of the acquisition date. Goodwill is recognized in the amount that the purchase consideration paid exceeds the fair value of the net assets acquired. Purchase consideration includes both cash paid and the fair value of noncash consideration exchanged, including stock and/or contingent consideration exchanged, and is reduced by the amount of cash or cash equivalents acquired.

In May 2023, the Company acquired Chemlink Laboratories LLC, a U.S.-based producer of small format cleaning solutions. The Company made two other immaterial acquisitions during the second quarter of 2023. All three acquisitions became part of the Global Institutional & Specialty reporting segment.

The purchase accounting for these acquisitions are preliminary and subject to change as the Company finalizes the valuation of intangible assets, income tax balances and working capital. The Company expects the goodwill arising from the acquisition of Chemlink Laboratories LLC to be tax deductible.

No acquisitions occurred during the first quarter of 2023 or first six months of 2022. The following table summarizes the acquisition date fair value of net assets acquired from the Company’s acquisitions during the second quarter of 2023:

	June 30
(millions)	2023
Net tangible assets (liabilities) acquired		$9.4
Identifiable intangible assets
Customer relationships		35.7
Other technology		21.6
Total intangible assets		57.3
Goodwill		38.7
Total aggregate purchase price		105.4
Acquisition-related liabilities and contingent consideration		(4.8)
Net cash paid for acquisitions, including acquisition-related
liabilities and contingent consideration		$100.6

During the first six months of 2022, the Company recorded purchase accounting adjustments associated with the finalization of the purchase accounting for its 2022 and 2021 acquisitions. As a result of these purchase accounting adjustments, the Company made $7.2 million of acquisition-related payments, acquisition related net liabilities increased by $7.1 million, definite-lived intangible assets decreased by $5.6 million, and goodwill increased by $19.9 million.

The weighted average useful life of identifiable intangible assets acquired during the first six months of 2023 was 12 years. No intangible assets were acquired during the first six months of 2022.