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ACQUISITIONS | 12 Months Ended
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Dec. 31, 2016
ACQUISITIONS |
ACQUISITIONS | NOTE 19 ACQUISITIONS On February 29, 2016, the Company completed its acquisition of MegaPlast GmbH and its subsidiaries along with Megaplast France S.a.r.l and Mega Pumps L.P. (“Mega Airless”). Mega Airless is a leading provider of innovative all-plastic airless dispensing systems for the beauty, personal care and pharmaceutical markets and operates two manufacturing facilities in Germany and one in the United States. The purchase price paid for Mega Airless was approximately $223.2 million ($203.0 million net of cash received) and was funded by cash on hand and borrowings on our revolving line of credit. Mega Airless contributed net sales of $59.4 million and pretax income of $4.1 million for the year ended December 31, 2016. Included in pretax income is a purchase accounting adjustment of $2.6 million related to the fair value of inventory acquired. The results of the acquired business from the acquisition date are included in the accompanying consolidated financial statements and are reported in the Beauty + Home and Pharma reporting segments. For the year ended December 31, 2016, we recognized $5.6 million in transaction costs related to the acquisition of Mega Airless. These costs are reflected in the selling, research & development and administrative section of the Consolidated Statements of Income. The following table summarizes the assets acquired and liabilities assumed as of the acquisition date at estimated fair value.
|  | February 29, 2016 |
Assets |  |  |  |
Cash and equivalents |  | $ | 20,197 |
Accounts receivable |  |  | 8,275 |
Inventories |  |  | 8,373 |
Prepaid and other |  |  | 378 |
Property, plant and equipment |  |  | 47,768 |
Goodwill |  |  | 105,561 |
Intangible assets |  |  | 72,106 |
Other miscellaneous assets |  |  | 8 |
Liabilities |  |  |  |
Current maturities of long-term obligations |  |  | 319 |
Accounts payable and accrued liabilities |  |  | 7,398 |
Long-term obligations |  |  | 13,402 |
Deferred income taxes |  |  | 18,366 |
Net assets acquired |  | $ | 223,181 |
During the quarter ended December 31, 2016, we obtained no other information requiring us to refine estimated fair values. As a result, no adjustments were made to the net assets acquired and we consider our purchase accounting to be complete. The following table is a summary of the fair value estimates of the acquired identifiable intangible assets and weighted-average useful lives as of the acquisition date:
|  | Weighted-Average |  | Estimated |
|  | Useful Life |  | Fair Value |
|  | (in years) |  | of Asset |
Customer relationships |  | 11 |  | $ | 57,120 |
Technology |  | 15 |  |  | 10,838 |
Trademark |  | 4 |  |  | 4,148 |
Total |  |  |  | $ | 72,106 |
Goodwill in the amount of $105.6 million was recorded for the acquisition of Mega Airless, of which $49.8 million and $55.8 million is included in the Beauty + Home and Pharma segments, respectively. Goodwill is calculated as the excess of the consideration transferred over the net assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill largely consists of leveraging the Company’s commercial presence in selling the Mega Airless line of products in markets where Mega Airless did not previously operate and the ability of Mega Airless to maintain its competitive advantage from a technical viewpoint. Goodwill will not be amortized, but will be tested for impairment at least annually. We do not expect any of the goodwill will be deductible for tax purposes. The unaudited pro forma results presented below include the effects of the Mega Airless acquisition as if it had occurred as of January 1, 2015. The unaudited pro forma results reflect certain adjustments related to the acquisition, such as the amortization associated with estimates for the acquired intangible assets and fair value adjustments for inventory. The 2016 pro forma earnings were adjusted to exclude $4.2 million after tax ($5.6 million pretax) of transaction costs, including consulting, legal, and advisory fees. The 2016 pro forma earnings were also adjusted to exclude $1.7 million after tax ($2.6 million pretax) of nonrecurring expense related to the fair value adjustment to acquisition-date inventory. The 2015 pro forma earnings were adjusted to include these adjustments. The pro forma results do not include any synergies or other expected benefits of the acquisition. Accordingly, the unaudited pro forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been completed on the dates indicated.
Years Ended December 31, |  | 2016 |  | 2015 |
($ millions) |  |  |  |  |  |  |
Net Sales |  | $ | 2,340 |  | $ | 2,386 |
Net Income Attributable to AptarGroup Inc. |  |  | 213 |  |  | 194 |
Net Income per common share — basic |  |  | 3.39 |  |  | 3.11 |
Net Income per common share — diluted |  |  | 3.29 |  |  | 3.01 |

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