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Acquisitions | 12 Months Ended
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Dec. 31, 2019
Acquisitions |
Acquisitions | Note 2. Acquisitions ​ 2019 Acquisition ​ On December 31, 2019, we acquired Fry Steel Company (“Fry Steel”). Fry Steel is a general line and long bar distributor located in Santa Fe Springs, California. Fry Steel specializes in the cutting of various bar products including stainless, alloy, aluminum, carbon, brass and bronze. No sales of Fry Steel were included in our net sales for 2019. ​ ​ The preliminary allocation of the total purchase price for our 2019 acquisition of Fry Steel to the fair values of the assets acquired and liabilities assumed was as follows: ​
​ | ​ | ​
​ | (in millions)
Cash | $ | 17.1
Accounts receivable | ​ | 5.7
Inventories | ​ | 38.8
Property, plant and equipment | ​ | 6.4
Goodwill | ​ | 130.8
Other current and long-term assets | ​ | 0.2
Total assets acquired | ​ | 199.0
Other current and long-term liabilities | ​ | 5.1
Total liabilities assumed | ​ | 5.1
Net assets acquired | $ | 193.9
​ We funded our acquisition of Fry Steel with borrowings on our revolving credit facility and cash on hand. The purchase price allocation is pending the completion of purchase price adjustments, based on tangible and intangible asset valuations, and the completion of pre-acquisition period tax returns. ​ 2018 Acquisitions ​ On November 1, 2018, we acquired All Metals Holding, LLC, including its operating subsidiaries All Metals Processing & Logistics, Inc. and All Metals Transportation and Logistics, Inc. (collectively, “All Metals”). All Metals is headquartered in Spartanburg, South Carolina with an additional facility in Cartersville, Georgia. All Metals specializes in toll processing for automotive, construction, appliance and other end markets, and provides value-added transportation and logistics services for metal products from six strategically located terminals throughout the southeastern United States. All Metals’ net sales were $29.7 million in 2019. ​ On October 23, 2018, we purchased the remaining 40% noncontrolling interest of Acero Prime, S. de R.L. de C.V. (“Acero Prime”), a toll processor in Mexico, which increased our ownership from 60% to 100%. Acero Prime, headquartered in San Luis Potosi, has four toll processing locations. Acero Prime performs metal processing services such as slitting, multi-blanking and oxy-fuel cutting, as well as storage and supply-chain management for a variety of different industries including automotive, home appliance, lighting, HVAC, machinery and heavy equipment. Acero Prime’s net sales were $44.8 million in 2019. We have consolidated the financial results of Acero Prime since October 1, 2014 when we acquired a majority interest. Consequently, the increase in our ownership from 60% to 100% was accounted for as an equity transaction. ​ On August 1, 2018, we acquired KMS Fab, LLC and KMS South, Inc. (collectively, “KMS” or the “KMS Companies”). The KMS Companies are headquartered in Luzerne, Pennsylvania. The KMS Companies specialize in precision sheet metal fabrication ranging from prototypes to large production runs which utilize a wide variety of metals and fabrication methods including laser cutting, stamping, turret punching, machining, powder coating and welding. KMS’ net sales were $32.6 million in 2019. ​ On March 1, 2018, we acquired DuBose National Energy Services, Inc. (“DuBose Energy”) and its affiliate, DuBose National Energy Fasteners & Machined Parts, Inc. (“DuBose Fasteners” and, together with DuBose Energy, “DuBose”). DuBose is headquartered in Clinton, North Carolina. DuBose specializes in fabrication, supply and distribution of metal and metal products to the nuclear industry, including utilities, component manufacturers and contractors. DuBose’s net sales were $42.9 million in 2019. ​ We funded our 2018 acquisitions with borrowings on our revolving credit facility and cash on hand. ​ The allocation of the total purchase price for our 2018 acquisitions to the fair values of the assets acquired and liabilities assumed was as follows: ​
​ | ​ | ​
​ | (in millions)
Cash | $ | 2.4
Accounts receivable | ​ | 13.1
Inventories | ​ | 10.0
Property, plant and equipment | ​ | 20.1
Goodwill | ​ | 32.9
Intangible assets subject to amortization | ​ | 25.0
Intangible assets not subject to amortization | ​ | 18.3
Other current and long-term assets | ​ | 1.1
Total assets acquired | ​ | 122.9
Current and long-term debt | ​ | 25.9
Deferred taxes | ​ | 5.4
Other current and long-term liabilities | ​ | 9.6
Total liabilities assumed | ​ | 40.9
Net assets acquired | $ | 82.0
​ 2017 Acquisition ​ On October 2, 2017, through our wholly owned subsidiary Diamond Manufacturing Company, we acquired Ferguson Perforating Company (“Ferguson”). Ferguson, headquartered in Providence, Rhode Island, specializes in manufacturing highly engineered and complex perforated metal parts that have application in diverse end markets including industrial machinery, automotive, aerospace, sugar products and consumer electronics manufacturers. Ferguson’s net sales were $37.2 million in 2019. ​ We funded our acquisition of Ferguson with borrowings on our revolving credit facility and cash on hand. ​ Summary purchase price allocation information for all acquisitions ​ All of the acquisitions discussed in this note other than Acero Prime have been accounted for under the acquisition method of accounting and, accordingly, each purchase price has been allocated to the assets acquired and liabilities assumed based on the estimated fair values at the date of each acquisition. The accompanying consolidated statements of income include the revenues and expenses of each acquisition since its respective acquisition date. The consolidated balance sheets reflect the allocations of each acquisition’s purchase price as of December 31, 2019 or 2018, as applicable. The measurement periods for purchase price allocations do not exceed 12 months from the acquisition date. ​ The increase in our ownership of Acero Prime from 60% to 100% in 2018 was accounted for as an equity transaction. The difference between the $29.0 million consideration paid and the $19.7 million noncontrolling interest, or $9.3 million, was recognized as a decrease in total Reliance stockholders’ equity. ​ As part of the purchase price allocations for the acquisitions completed in 2018 and 2017, $18.3 million and $3.7 million, respectively, were allocated to the trade names acquired. We determined that all of the trade names acquired in connection with these acquisitions had indefinite lives since their economic lives are expected to approximate the life of each company acquired. Additionally, we recorded other identifiable intangible assets related to customer relationships for the 2018 and 2017 acquisitions of $24.8 million and $3.7 million, respectively, with weighted average lives of 10.0 years. The goodwill arising from our 2019, 2018 and 2017 acquisitions consists largely of expected strategic benefits, including enhanced financial and operational scale, as well as expansion of acquired product and processing know-how across our enterprise. The preliminary tax deductible goodwill from our 2019 acquisition amounted to $131.0 million. Total tax deductible goodwill amounted to $817.4 million as of December 31, 2019.

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