ACQUISITIONS

On January 12, 2012, we acquired 100% of Western Pneumatic Tube Holding, LLC (Western). Western is a leading provider of integral components for critical aircraft systems, and forms the new Aerospace Products business unit within the Tubing Group. Western specializes in fabricating thin-walled, large diameter, welded tubing and specialty formed products from titanium, nickel and other specialty materials for leading aerospace suppliers and OEMs. The cash purchase price of $188 was financed with proceeds from the sale of commercial paper notes under our existing commercial paper program.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition during the periods presented, and any additional consideration paid for prior years’ acquisitions:



	Nine Months Ended September 30,
	2012			2011
Accounts receivable	$	8.8		$	1.5
Inventory	18.9			1.8
Property, plant and equipment	12.0			1.1
Goodwill	54.3			1.9
Other intangible assets (average weighted amortization period of 16.5 years)	102.4			—
Accounts payable and accrued liabilities	(6.8		)	(1.2		)
Other assets and liabilities, net	.6			(.4		)
Additional consideration for prior year’s acquisitions	.1			1.9
Net cash consideration	$	190.3		$	6.6

The following table presents acquisitions for the periods presented. We are finalizing all of the information required to complete the purchase price allocations related to the most recent acquisitions and do not anticipate material modifications. Preliminary information used in the fair value assessments in the Western acquisition is primarily related to certain accruals and contingencies and the tax basis of assets acquired.

Nine Months Ended

Number of

Acquisitions

Segment

Product

Goodwill

In Year of

Acquisition

Expected to

Provide

Income

Tax

Benefit

September 30, 2012

Industrial

Materials

Tubing for the
aerospace industry;
Tube fabrication

54.3

September 30, 2011

Residential

Furnishings

Geo Textiles; Furniture Hardware

1.9

Factors that contributed to a purchase price resulting in the recognition of goodwill included Western’s competitive position, and its fit with our strategy to seek businesses with secure, leading positions in growing, profitable, attractive markets.

The results of operations of the above acquired companies have been included in the consolidated financial statements since the dates of acquisition. While we expect future activity to be incremental to the Industrial Materials segment, the unaudited pro forma consolidated net sales, net earnings and earnings per share as though the 2012 acquisitions had occurred on January 1 of the prior period presented is not materially different from the amounts reflected in the accompanying financial statements.

Certain of our acquisition agreements provide for additional consideration to be paid in cash at a later date and are recorded as a liability at the acquisition date. At September 30, 2012, there was no substantial remaining consideration payable.

In the third quarter 2012, we invested $22.4 to acquire a non-controlling interest in a potential acquisition. This amount is included in "Sundry" long-term assets in the accompanying balance sheet. We have no contractual right or obligation to make any additional investment. At the time of the investment, we secured certain rights that allow us to liquidate our position without loss if we decide to no longer pursue this business as an acquisition.