XML 41 R24.htm IDEA: XBRL DOCUMENT
v3.21.2

Business Combinations and Divestitures | 12 Months Ended
--- | ---
Sep. 30, 2020
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | 19. BUSINESS COMBINATIONS Fiscal 2021 The Company completed four acquisitions during the year ended September 30, 2021 for a total aggregate cash consideration of $92,463. •Edmonson Electric, LLC ("Edmonson") - On May 18, 2021, we acquired an 80% ownership interest in Edmonson, a Land O'Lakes, Florida-based provider of residential electric, low voltage, and heating, ventilation and air conditioning (HVAC) installation services. The acquisition of Edmonson expanded our presence in the Florida market and added electrical to our Florida service offerings. Edmonson is part of our Residential segment and continues to operate under the Edmonson name. •Bayonet Plumbing, Heating & Air-Conditioning, LLC ("Bayonet") - On December 21, 2020, we acquired an 80% ownership interest in Bayonet, a Hudson, Florida-based provider of residential HVAC and plumbing installation and maintenance services. The acquisition of Bayonet allowed us to expand into the Florida market, while adding plumbing and HVAC to our service offerings. Bayonet is part of our Residential segment and continues to operate under the Bayonet name. •Wedlake Fabricating, Inc. (“Wedlake”) - On November 19, 2020, we acquired Wedlake, a Tulsa, Oklahoma-based manufacturer of custom generator enclosures that are primarily used by data centers and large commercial and industrial facilities. The acquisition of Wedlake expanded our generator enclosures business and our geographic footprint. Wedlake is part of our Infrastructure Solutions segment and continues to operate under the Wedlake name. •K.E.P. Electric, Inc. (“KEP”) - On November 5, 2020, we acquired KEP, a Batavia, Ohio-based electrical contractor specializing in the design and installation of electrical systems for single-family housing and multi-family developments. The acquisition of KEP, which has operations in Ohio and Kentucky, advanced the expansion of our Residential service offerings into the Midwest. KEP is part of our Residential segment and continues to operate under the KEP name. Total aggregate cash consideration for these acquisitions was $92,463, of which $10,916 was paid into escrow pending discharge of the acquired companies' indebtedness under the Paycheck Protection Program ("PPP") established by the Coronavirus Aid, Relief, and Economic Security Act and implemented by the U.S. Small Business Administration. Loans made under the PPP are eligible to be forgiven if certain criteria are met. As of September 30, 2021, all PPP loans were forgiven and escrow payments have been distributed to the respective sellers. In addition to the cash consideration, the purchase price also includes contingent consideration with respect to the acquisition of Bayonet of up to $4,500 due in December 2023. Amounts to be paid are contingent on earnings achieved over a three year period, and will accrue interest on the $4,500 at a rate of 3%, to be paid quarterly. This contingent liability was valued at $4,074 as of the date of the acquisition. The Company accounted for the transactions under the acquisition method of accounting, which requires recording assets and liabilities at fair value (Level 3). The valuations derived from the estimated fair value assessments and assumptions used by management are preliminary pending finalization of certain tangible and intangible asset valuations and assessment of deferred taxes. While management believes the preliminary estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different values being assigned to individual assets acquired and liabilities assumed. This may result in further adjustments to the preliminary amounts recorded. The preliminary valuation of the assets acquired and liabilities assumed is as follows:
Current assets | $ | 36,348 |
Property and equipment | 11,965 |
Intangible assets | 59,648 |
Goodwill | 38,632 |
Operating right of use assets | 837 |
Current liabilities | (29,149) |
Operating long-term lease liabilities | (723) |
Deferred tax liability | (3,282) |
Noncontrolling interest | (21,813) |
Net assets acquired | $ | 92,463 |
With regard to goodwill, the balance is attributable to the workforce of the acquired business and other intangibles that do not qualify for separate recognition. In connection with these acquisitions, the preliminary estimate of acquired goodwill is $38,632 of which $20,741 is tax deductible. The intangible assets acquired primarily consisted of Customer Relationships and Trade Names with a total weighted-average amortization period of 6.4 years. These acquisitions contributed $179,628 in revenue and $6,508 in operating income during the year ended September 30, 2021. Fiscal 2020 We completed two acquisitions in fiscal 2020 for total aggregate cash consideration of $28,952. In February 2020, we acquired both Aerial Lighting & Electric, Inc. ("Aerial"), a Naugatuck, Connecticut-based electrical contractor specializing in the design and installation of electrical systems for multi-family developments, and Plant Power and Control Systems, L.L.C. ("PPCS"), a Birmingham, Alabama-based manufacturer and installer of custom engineered power distribution equipment. These acquisitions contributed $21,836 in revenue and $812 in operating income during the year ended September 30, 2020. Unaudited Pro Forma Information The following unaudited supplemental pro forma results of operations for the year ended September 30, 2021 are calculated as if each acquisition occurred as of October 1 of the fiscal year prior to consummation.
|  |  | Unaudited
|  |  | Twelve Months Ended September 30,
|  |  | 2021 |  | 2020
Revenues |  | $ | 1,631,057 |  | $ | 1,441,933 |
Net income attributable to IES Holdings, Inc. | $ | 69,928 |  | $ | 49,257 |

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration