Annual report pursuant to Section 13 and 15(d)

Business Acquisitions

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Business Acquisitions
12 Months Ended
Sep. 30, 2015
Business Combinations [Abstract]  
Business Acquisitions
Business Acquisitions
 
Coperion
 
We completed the acquisition of Coperion on December 1, 2012, in a transaction valued at $540.7.  The aggregate purchase consideration consisted of $269.1 of cash, net of cash acquired, and the assumption of $146.0 of debt and $129.9 of pension liabilities.  We utilized $426.3 of borrowings under our revolving credit facility and cash on hand to finance the acquisition, including the repayment of $146.0 of debt outstanding under Coperion’s prior financing arrangements. Based in Stuttgart, Germany, Coperion is a global leader in the manufacture of compounding, extrusion, and material handling equipment used in a broad range of industries, including plastics, chemicals, food processing, and pharmaceutical. 

The following table summarizes fair values of the assets acquired and liabilities assumed in the Coperion acquisition:
 
 
December 1, 2012
Cash and cash equivalents
$
32.8

Inventory
112.4

Current assets, excluding cash and cash equivalents and inventory
180.0

Property, plant, and equipment
54.4

Identifiable intangible assets
291.8

Goodwill
275.3

Other assets
2.1

Total assets
948.8

 
 

Current liabilities
288.8

Accrued pension obligations
129.9

Deferred income taxes
67.3

Other long-term liabilities
6.7

Total liabilities
492.7

 
 

Noncontrolling interests
8.2

 
 

Aggregate purchase price
$
447.9


 
Final purchase accounting adjustments were made, which increased the accrued pension obligations ($4.3) based on finalization of the actuarial analysis for Coperion’s defined benefit plans.  In addition, adjustments were made to increase current liabilities ($2.8) and noncontrolling interests ($1.7) and decrease deferred income taxes ($1.3).  Total purchase accounting adjustments increased goodwill by $7.5.  These adjustments are reflected in the table above.
 
Goodwill is not deductible for tax purposes and was allocated entirely to the Process Equipment Group.  Fair value amounts assigned to identifiable finite-lived intangible assets are being amortized on a straight-line basis over their estimated useful lives.  The amounts and useful lives assigned to each asset type at the time of acquisition were:
 
 
Fair Values
 
Estimated
Useful Lives
 (years)
Trade names
$
55.6

 
Indefinite
Customer relationships
157.7

 
20
Technology, including patents
44.2

 
12
Backlog
34.3

 
<1
Total identifiable intangible assets
$
291.8

 
 

 
Other Acquisitions
 
On October 2, 2015, we completed an acquisition of Abel Pumps LP and Abel GmbH & Co. KG and certain of their affiliates (collectively “Abel”) from Roper Technologies for €95 million in cash. See Note 18 to our consolidated financial statements.

We incurred $3.6 of business acquisition and integration costs during 2015 recorded in operating expenses.