Business Acquisitions and Investments

12 Months Ended

Dec. 31, 2016

Business Acquisitions and Investments [Abstract]

Business Acquisitions and Investments

2. Business Acquisitions and Investments

2016 Business Acquisitions

In May 2016, we acquired the North American automotive ignition wire business of General Cable Corporation for approximately $67.5 million.  The acquisition was paid for in cash funded by our revolving credit facility with JPMorgan Chase, as agent.  The acquisition includes the purchase of certain assets and the assumption of certain liabilities of General Cable Corporation’s (and certain of its affiliates) automotive ignition wire business in North America as well as 100% of the equity interests of a General Cable subsidiary in Nogales, Mexico.  Revenues generated from the acquired business were approximately $96 million for the year ended December 31, 2015.

The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values (in thousands):

Purchase Price				$	67,451
Assets acquired and liabilities assumed:
Receivables	$	3,130
Inventory		12,567
Other current and noncurrent assets (1)		334
Property, plant and equipment, net		2,660
Intangible assets		42,440
Goodwill		12,746
Current liabilities		(6,426	)
Net assets acquired				$	67,451

(1) Other current and noncurrent assets includes $0.2 million of cash acquired.

Intangible assets acquired of $42.4 million consists of customer relationships of $39.4 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; a non-compete agreement of $2.2 million that will be amortized on a straight-line basis over the estimated useful life of 5 years; and a supply agreement of $0.8 million that will be amortized on a straight-line basis over the estimated useful life of 1 year.  Goodwill of $12.7 million was allocated to the Engine Management Segment and is deductible for income tax purposes.  The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations, as well as the value of expected synergies.

Revenues included in our consolidated statements of operations for the acquisition was $52.9 million from the date of acquisition through December 31, 2016.

Pro Forma Information (Unaudited)

The following table summarizes certain supplemental unaudited pro forma financial information which was prepared as if the acquisition of the North American automotive ignition wire business of General Cable Corporation described above had occurred as of January 1, 2015.  The unaudited pro forma financial information was prepared for comparative purposes only and does not purport to be indicative of what would have occurred had the acquisition been made at that time, or of results which may occur in the future.

Supplemental unaudited pro forma financial information for the acquisition is as follows (in thousands):

	December 31, 2016				December 31, 2015
	Reported		Pro Forma		Reported		Pro Forma
Revenues	$	1,058,482	$	1,097,813	$	971,975	$	1,067,834
Net earnings		60,430		62,138		46,018		47,723