Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the acquisition date:



(in millions)
Purchase price, inclusive of preliminary closing adjustments ^(a)	$	49.8
Estimated fair value of additional consideration ^(b)	7.9
Total consideration	57.7

Cash	0.2
Accounts receivable	3.2
Inventories	12.9
Prepaid expenses and other current assets	0.3
Properties and equipment	6.4
Operating lease right-of-use assets	4.6
Other long-term assets	0.1
Customer relationships ^(c)	17.7
Trade names ^(d)	9.0
Other intangible assets	1.4
Operating lease liabilities	(4.6		)
Accounts payable	(3.7		)
Accrued liabilities	(1.0		)
Customer deposits	(5.9		)
Deferred tax liabilities	(1.4		)
Net assets acquired	39.2

Goodwill ^(e)	$	18.5


(a)	The initial purchase price was funded with borrowings under the Company’s revolving credit facility.


(b)	Represents the preliminary estimated fair value of the contingent earn-out payment as of the acquisition date, which is included as a component of Other long-term liabilities on the Condensed Consolidated Balance Sheet. See Note 14 – Fair Value Measurements for discussion of the methodology used to determine the fair value of the contingent earn-out payment.


(c)	Represents the preliminary fair value assigned to customer relationships, which are considered to be definite-lived intangible assets, with a preliminary estimated useful life of approximately 12 years.


(d)	Represents the preliminary fair value assigned to trade names, which are considered to be indefinite-lived intangible assets.

(e)

Goodwill, the majority of which is tax-deductible, has been allocated to the Environmental Solutions Group on the basis that the synergies identified will primarily benefit this segment.