Acquisition

9 Months Ended

Sep. 30, 2015

Acquisition [Abstract]

Acquisition

2. Acquisition

On January 30, 2015, the Company’s Industrial Products group (“IPG”) acquired all of the outstanding equity interests of the Plant Equipment Group (“P.E.G.”) from TAKKT America, a business-to-business direct marketer of maintenance, repair and operations (“MRO”) products with operations in North America and Mexico for approximately $25.9 million in cash, $1.9 million of which was placed into an escrow account for one year to secure the sellers’ indemnification obligations under the purchase agreement.  The Company completed a preliminary allocation of the purchase price as of the acquisition date and recorded assets of approximately $4.1 million for trade and domain names, $2.1 million for client lists, $0.8 million for favorable leases and $5.8 million of residual goodwill.  The Company expects to amortize its client lists over a 5 to 10 year period and the favorable leases over a 3 to 6 year period.  All other assets have indefinite lives.  This acquisition expands the IPG segment presence in the MRO market in North America.  The P.E.G. accounts are included in the IPG segment in the accompanying condensed consolidated statement of operations from the date of acquisition. This acquisition was not considered to be a material acquisition for financial reporting purposes.