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ACQUISITIONS

9 Months Ended

Sep. 30, 2025

ACQUISITIONS

3. ACQUISITIONS

The Company makes business acquisitions that align with its strategic business objectives. The assets and liabilities of acquired businesses are recorded in the Consolidated Balance Sheets based on estimates of the fair value of assets acquired, liabilities assumed and noncontrolling interests acquired as of the acquisition date. Goodwill is recognized in the amount that the purchase consideration paid exceeds the fair value of the net assets acquired. Purchase consideration includes both cash paid and the fair value of noncash consideration exchanged, including stock and/or contingent consideration, and is reduced by the amount of cash or cash equivalents acquired.

No acquisitions were completed during the first nine months of 2025. In May and September 2024, the Company completed two immaterial acquisitions both of which became part of the Global Pest Elimination reporting segment.

On August 12, 2025, the Company entered into an agreement to acquire Ovivo Electronics for 2.4 billion Canadian dollars (“CAD”) ($1.8 billion), subject to customary adjustments. Ovivo Electronics is a leading and fast-growing global provider of breakthrough ultra-pure water technologies for semiconductor manufacturing. Completion of the acquisition is subject to regulatory clearances and other customary closing conditions. Additionally, in September 2025, the Company entered into foreign currency option contracts with an aggregate notional amount of CAD 2.2 billion ($1.6 billion) to mitigate the currency exchange risk associated with the planned acquisition. These foreign exchange contracts will be accounted for as separate transactions from the acquisition and are not designated as hedging instruments. Refer to Note 8, Derivatives and Hedging Transactions, for further information relating to these financial instruments.

The following table summarizes the acquisition date fair value of net assets acquired from the Company’s acquisitions during the first nine months of 2024:



(millions)			2024
Net tangible assets (liabilities) acquired				$2.0

Identifiable intangible assets
Customer relationships				18.3
Trademarks				1.8
Other technology				1.6
Total intangible assets				21.7

Goodwill				33.6
Total aggregate purchase price				57.3

Acquisition-related liabilities and contingent consideration				(3.2)
Net cash paid for acquisitions, including acquisition-related
liabilities and contingent consideration				$54.1

During the first nine months of 2025, the Company recorded adjustments associated with the finalization of the purchase accounting for its 2024 acquisitions. As a result of these purchase accounting adjustments, the Company made $0.7 million of acquisition-related payments, acquisition-related net liabilities decreased by $0.3 million, net tangible assets acquired decreased by $5.3 million, and goodwill increased by $5.7 million.

No identifiable intangible assets were acquired during the first nine months of 2025. The weighted average useful life of identifiable intangible assets acquired during the first nine months of 2024 was 9 years.