Acquisitions

6 Months Ended

Jun. 28, 2020

On January 10, 2020, the Company completed the acquisition of a small tube and core operation in Jacksonville, Florida, from Design Containers, Inc. ("Jacksonville"), for total cash consideration of $3,973.

The preliminary fair values of the assets acquired in connection with the Jacksonville acquisition are as follows:


	Jacksonville
Property, plant and equipment	$	2,773
Inventories	150
Goodwill	1,050
Net Assets	$	3,973

Goodwill, all of which is expected to be deductible for income tax purposes, consists of increased access to certain markets. Jacksonville's financial results from January 10, 2020 to June 28, 2020 are included in the Company's Paper and Industrial Converted Products segment.

During the six months ended June 28, 2020, the Company continued to finalize its valuations of the assets acquired and liabilities assumed in the December 31, 2019 acquisition of Thermoform Engineered Quality, LLC, and Plastique Holdings, LTD (together "TEQ") and the August 9, 2019 acquisition of Corenso Holdings America, Inc. ("Corenso") based on new information obtained about facts and circumstances that existed as of their respective acquisition dates. In addition, a final post-closing settlement for the change in working capital at TEQ to the date of closing was made in April 2020 resulting in the receipt of cash from the sellers totaling $185. The following measurement period adjustments were made to the previously disclosed preliminary fair values:


	TEQ		Corenso
Trade accounts receivable	$	(41)	$	—
Inventories	(241)		(536)
Property, plant and equipment	(2,020)		—
Goodwill	2,763		616
Other intangible assets	600		—
Payable to suppliers	—		(80)
Other net tangible assets/liabilities	(701)		—
Deferred income taxes, net	(545)		—
Decrease in consideration paid	$	(185)	$	—

The allocation of the purchase price of TEQ and Corenso to the tangible and intangible assets acquired and liabilities assumed was based on the Company's preliminary estimates of their fair value, based on information currently available. Management is continuing to finalize its valuations of certain assets and liabilities including, but not limited to, those listed in the table above, and expects to complete its valuations within one year from their respective dates of acquisition.

On April 12, 2018, the Company completed the acquisition of Highland Packaging Solutions ("Highland"). Total consideration for this acquisition included a contingency purchase liability of $7,500 payable in two annual installments if certain sales metrics were achieved. The metrics were met and the Company paid the first installment of $5,000 in 2019 and paid the second and final installment of $2,500 in May 2020. The payments of these contingent obligations are reflected as financing activities on the Company's Condensed Consolidated Statement of Cash Flows for the six months ended June 28, 2020 and June 30, 2019.

The Company has accounted for its acquisitions as business combinations under the acquisition method of accounting, in accordance with the business combinations subtopic of the Accounting Standards Codification and has included their results of operations in the Company's Condensed Consolidated Statements of Income from their respective dates of acquisition. Costs related to acquisitions and potential acquisitions and divestitures totaling $357 and $1,224 were incurred during the three months ended June 28, 2020 and June 30, 2019, respectively, and $1,528 and $1,624 during the six months ended June 28, 2020 and June 30, 2019, respectively. These costs consist primarily of legal and professional fees and are included in "Selling, general and administrative expenses" in the Company's Condensed Consolidated Statements of Income.