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Acquisitions | 3 Months Ended
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Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Acquisitions | Acquisitions The Company spent $103.2 million in cash, net of cash acquired, to acquire Kern Microtechnik ("Kern"), a leading manufacturer of high-precision machining and optical inspection solutions supporting a wide range of applications within the medical, semiconductor, research, and space markets. Kern has annual sales of approximately 50 million Euros. Kern is part of EIG. The following table represents the allocation of the purchase price for the net assets of the Kern acquisition based on the estimated fair values at acquisition (in millions):
Property, plant and equipment |  |  |  |  | $ | 15.2 |
Goodwill |  |  |  |  | 48.4 |
Other intangible assets |  |  |  |  | 59.6 |
Deferred income taxes |  |  |  |  | (18.9) |
Net working capital and other(1) |  |  |  |  | 7.8 |
Total purchase price |  |  |  |  | $ | 112.1 |
Less: Acquisition date fair value of contingent payment liability |  |  |  |  | (8.9) |
Total cash paid |  |  |  |  | $ | 103.2 |
________________ (1)Includes $6.3 million in accounts receivable, whose fair value, contractual cash flows and expected cash flows are approximately equal. The amount allocated to goodwill is reflective of the benefits the Company expects to realize from the acquisition. Kern's design and engineering capabilities complement the Company's existing ultra precision technologies business. At March 31, 2025, the purchase price allocated to other intangible assets of $59.6 million consists of $9.6 million of indefinite-lived intangible trade names, which are not subject to amortization. The remaining $50.0 million of other intangible assets consists of $40.4 million of customer relationships, which are being amortized over a period of 17 years, and $9.6 million of purchased technology, which is being amortized over a period of 17 years. Amortization expense for each of the next five years for the 2025 acquisition is expected to approximate $3 million per year. The Kern acquisition includes an $8.9 million estimated fair value contingent payment due upon Kern achieving certain cumulative revenue and EBITDA targets over the period January 1, 2025 to January 1, 2027. The contingent liability was based on a probabilistic approach using level 3 inputs. At March 31, 2025, there was no change to the estimated fair value of the contingent payment liability. The Kern acquisition had an immaterial impact on reported net sales, net income, and diluted earnings per share for the three months ended March 31, 2025. Had the acquisition been made at the beginning of 2025 or 2024, pro forma net sales, net income, and diluted earnings per share for the three months ended March 31, 2025 and 2024, would not have been materially different than the amounts reported. The Company has not finalized its measurements of certain tangible and intangible assets and liabilities or the accounting for income taxes for its October 2024 acquisition of Virtek Vision International or its January 2025 acquisition of Kern.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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