Acquisitions

3 Months Ended

Mar. 28, 2020

Business Combinations [Abstract]

Acquisitions

Acquisitions

Shoals Tubular, Inc.

On January 17, 2020, the Company entered into a stock purchase agreement pursuant to which the Company acquired all of the outstanding stock of Shoals Tubular, Inc. (STI) for approximately $15.4 million, net of working capital adjustments. The total purchase price consisted of $15.4 million in cash at closing. STI is a manufacturer of brazed manifolds, headers, and distributor assemblies used primarily by manufacturers of residential heating and air conditioning units. The acquired business is reported within and complements the Company’s existing businesses in the Climate segment.

The fair value of the tangible assets acquired totaled $5.5 million, consisting primarily of property, plant, and equipment of $3.2 million, inventories of $1.7 million, and accounts receivable of $0.6 million. The fair value of the liabilities assumed totaled $0.3 million, consisting primarily of accounts payable of $0.1 million and other current liabilities of $0.2 million. Of the remaining purchase price, $10.2 million was allocated to tax-deductible goodwill and intangible assets. The purchase price allocation is provisional as of March 28, 2020 and subject to change upon completion of the final valuation of the long-lived assets and working capital during the measurement period.