Note 4 - Acquisitions

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Business Combination Disclosure [Text Block]

( 4 ) Acquisitions

In

October 2016,

Cambrex purchased

100%

of PharmaCore, Inc. a privately-held company located in High Point, NC for

$24,275,

net of cash. The transaction was structured as a stock purchase.

PharmaCore, which has been renamed Cambrex High Point, Inc. (“CHP”), specializes in developing, manufacturing and scaling up small molecule APIs for projects in early clinical phases. With the acquisition of CHP, Cambrex enhances its capabilities and expertise to efficiently develop early clinical phase products and new technologies, and increases the number of potential late stage and commercial products that could be manufactured at Cambrex’s larger manufacturing sites.

The

allocation of the purchase price of the acquired assets and liabilities was performed on the basis of their respective fair values. The Company utilized a

third

party to assist in establishing the fair values of the assets acquired and liabilities assumed. This process resulted in goodwill of

$9,046,

fixed assets of

$8,422

and identifiable intangible assets of

$6,900

as well as smaller adjustments to certain working capital accounts. The Company also recorded deferred tax assets primarily related to NOLs for approximately

$4,000

and deferred tax liabilities for approximately

$4,400.

All acquisition costs have been expensed and totaled approximately

$640

as well as approximately $

200

of severance cost, all of which has been recorded to “Selling, general and administrative expenses” on the Company’s 

2016

income statement. For the year ended

December 31, 2016,

the Company recorded gross sales of

$4,648

and after purchase price adjustments and severance, operating profit was

not

material. Proforma disclosures have

not

been provided due to the immateriality of this acquisition.