Discontinued Operations Discontinued Operations

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

On December 20, 2019, the Company completed the sale of Lamons to two wholly-owned subsidiaries of an investment fund sponsored by First Reserve, pursuant to an Asset and Stock Purchase Agreement dated as of November 1, 2019 (the “Purchase Agreement”), for a purchase price of $136.8 million.

The Company recognized net cash proceeds of approximately $112.7 million, which represented the purchase price, less estimated tax payments of approximately $20.9 million, transaction costs of approximately $3.2 million. The Company recorded a pre-tax gain on sale of approximately $38.9 million, which includes the recognition of previously deferred non-cash foreign currency translation losses of approximately $12.4 million.

The Company determined that Lamons met the criteria to be classified as a discontinued operation. As a result, the historical results for Lamons are reported in the accompanying consolidated statement of operations as a discontinued operation.

Results of discontinued operations are summarized as follows (dollars in thousands):

	Year ended December 31,
	2019		2018
Net sales	$	182,590	$	172,110
Cost of sales	(138,100)		(128,100)
Gross profit	44,490		44,010
Selling, general and administrative expenses	(32,920)		(30,590)
Net gain (loss) on dispositions of assets	38,900		(160)
Operating profit	50,470		13,260
Other income (expense), net	(30)		360
Other income (expense), net	(30)		360
Income from discontinued operations, before income taxes	50,440		13,620
Income tax expense	(13,760)		(4,030)
Income from discontinued operations, net of tax	$	36,680	$	9,590