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ACQUISITIONS
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
ACQUISITIONS
ACQUISITIONS
The following table contains the estimated fair values (using inputs as discussed in Note 13) of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions during the periods presented. A portion of the goodwill included in the table below is expected to provide an income tax benefit.
 
Nine Months Ended September 30,
 
2018
 
2017
Accounts receivable
$
19.6

 
$
10.0

Inventory
26.1

 
6.3

Property, plant and equipment
28.2

 
14.6

Goodwill
27.7

 
12.8

Other intangible assets, primarily customer-related intangibles
28.9

 
19.5

Other current and long-term assets
.8

 
1.1

Current liabilities
(12.3
)
 
(4.6
)
Long-term liabilities
(10.2
)
 
(5.6
)
Non-controlling interest

 
(.5
)
Fair value of net identifiable assets
108.8

 
53.6

Less: Additional consideration payable
.9

 
2.8

Less: Common stock issued for acquired companies

 
11.8

Net cash consideration
$
107.9

 
$
39.0



The following table summarizes acquisitions for the periods presented.
Nine Months Ended
 
Number of Acquisitions
 
Segment
 
Product/Service
September 30, 2018
 
3
 
Residential Products;

Specialized Products
 
Manufacturer/distributor of geo components; Manufacturer and distributor of silt fence; Global manufacturer of engineered hydraulic cylinders
 
 
 
 
 
 
 
September 30, 2017
 
3
 
Residential Products;

Furniture Products
 
Distributor and installer of geosynthetic products; Carpet cushion; Surface-critical bent tube components

We are finalizing all the information required to complete the purchase price allocations related to certain recent acquisitions and do not anticipate any material modifications.

The results of operations of the above acquired companies have been included in the consolidated condensed financial statements since the dates of acquisition. The unaudited pro forma consolidated net sales, net earnings and earnings per share as though the 2018 and 2017 acquisitions had occurred on January 1 of the comparable prior annual reporting period are 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 liabilities at the acquisition date. At September 30, 2018 and December 31, 2017, our liability for these future payments was $12.0 ($2.6 current and $9.4 long-term) and $16.5 ($8.9 current and $7.6 long-term), respectively.  Components of the liability are based on estimates and contingent upon future events, therefore, the amounts may fluctuate materially until the payment dates. Additional consideration, including interest, paid on prior year acquisitions was $8.6 and $2.0 for the nine months ended September 30, 2018 and 2017, respectively.

A brief description of our acquisition activity by year for the periods presented is included below.
2018
In September 2018, in our Geo Components business unit, we acquired a manufacturer and distributor of innovative home and garden products found at most major retailers for $19.3. This acquisition provides a solid foundation on which to continue growing our retail market presence in Geo Components.
In May 2018, we acquired a manufacturer and distributor of silt fence, a core product for our Geo Components business unit, for $2.6.
In January 2018, we acquired Precision Hydraulic Cylinders (PHC), a leading global manufacturer of engineered hydraulic cylinders primarily for the materials handling market. The purchase price was $86.9 and added $26.3 of goodwill. PHC serves a market of mainly large Original Equipment Manufacturer (OEM) customers utilizing highly engineered, co-designed components with long product life-cycles, yet representing a small percentage of the end product’s cost. PHC represents a new growth platform and forms a new business group entitled Hydraulic Cylinders within the Specialized Products segment.
2017
We acquired three businesses in the first nine months of 2017:
A distributor and installer of geosynthetic products, expanding the geographic scope and capabilities of our Geo Components business.
A manufacturer of surface-critical bent tube components in support of the private-label finished seating strategy in our Work Furniture business.
A carpet underlay manufacturer, provides additional production capacity in our Flooring Products business.
These businesses broaden our geographic scope, capabilities, and product offerings, and added $12.8 ($8.9 to Residential Products and $3.9 to Furniture Products) of goodwill. We also acquired the remaining 20% ownership in an Asian joint venture in our Work Furniture business for $2.6.
Leggett Agrees to Purchase Elite Comfort Solutions, Inc.

On November 6, 2018, we entered into a definitive agreement to purchase all of the capital stock of Elite Comfort Solutions, Inc. (ECS) for a cash purchase price of $1,250.0, subject to customary post closing adjustments. ECS, headquartered in Newnan, Georgia, is a leader in specialized foam technology, primarily for the bedding and furniture industries. Following the closing of the transaction, ECS is expected to become a separate business unit and operate within the Residential Products segment. The definitive agreement contains customary closing conditions and is subject to regulatory approvals. We expect to close the transaction in January 2019. For additional details on this transaction, please refer to the Management's Discussion and Analysis on page 36.