SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

Subsequent to the end of the first quarter, the Company entered into agreements to acquire controlling interests in certain distributors in the U.S. professional groundwater market. These companies will continue to operate as full line wholesale distributors with a focus on total water systems support, including products from other industry manufacturers.

The Company previously held equity interests in these entities, each of which was less than 50 percent, and accounted for by the equity method of accounting. As a result of the additional acquisition, the Company’s total interest in each of the entities is now 100 percent and the entities will be included in the Company’s consolidated results effective from the date of acquisition.

The Company acquired the controlling interests of the entities for approximately $89 million, including assumed debt, subject to certain terms and conditions.

For financial reporting purposes, the acquired businesses will be reported separately from the Company’s existing Water Systems segment within a newly-established Distribution segment.