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Acquisitions and Purchase Accounting | 3 Months Ended
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Mar. 29, 2025
Business Combinations [Abstract] |
Business Combination Disclosure | Acquisitions and Purchase Accounting The company accounts for all business combinations using the acquisition method to record a new cost basis for the assets acquired and liabilities assumed. The difference between the purchase price and the fair value of the assets acquired and liabilities assumed has been recorded as goodwill in the financial statements. The company recognizes identifiable intangible assets, primarily trade names and customer relationships, at their fair value using a discounted cash flow model. The significant assumptions used to estimate the value of the intangible assets include revenue growth rates, projected profit margins, discount rates, royalty rates, and customer attrition rates. These significant assumptions are forward-looking and could be affected by future economic and market conditions. The results of operations are reflected in the consolidated financial statements of the company from the dates of acquisition. 2025 Acquisitions There were no acquisitions incurred during the three months ended March 29, 2025. 2024 Acquisitions During 2024, the company completed various acquisitions that were not individually material. The following estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition date for the 2024 acquisitions and are summarized as follows (in thousands):
| Preliminary Opening Balance Sheet |  | Measurement Period Adjustments |  | Adjusted Opening Balance Sheet
Cash | $ | 7,868 |  |  | $ | 9 |  |  | $ | 7,877 |
Current assets | 41,836 |  |  | (1,385) |  |  | 40,451 |
Property, plant and equipment | 31,515 |  |  | (358) |  |  | 31,157 |
Goodwill | 61,046 |  |  | 528 |  |  | 61,574 |
Other intangibles | 32,248 |  |  | — |  |  | 32,248 |
Long-term deferred tax asset | 9 |  |  | — |  |  | 9 |
Other assets | 266 |  |  | 1,004 |  |  | 1,270 |
Current portion of long-term debt | (290) |  |  | — |  |  | (290) |
Current liabilities | (42,304) |  |  | 570 |  |  | (41,734) |
Long-term debt | (369) |  |  | — |  |  | (369) |
Long-term deferred tax liability | (1,132) |  |  | — |  |  | (1,132) |
Other non-current liabilities | (10,763) |  |  | (368) |  |  | (11,131) |
Consideration paid at closing | $ | 119,930 |  |  | $ | — |  |  | $ | 119,930 |
Deferred payments | — |  |  | 76 |  |  | 76 |
Contingent consideration | 8,681 |  |  | — |  |  | 8,681 |
Net assets acquired and liabilities assumed | $ | 128,611 |  |  | $ | 76 |  |  | $ | 128,687 |
The net long-term deferred tax liability amounted to $1.1 million. The net deferred tax liability is related to the difference between the book and tax basis of identifiable intangible assets. The goodwill and $16.7 million of other intangibles associated with the trade names are subject to the non-amortization provisions of ASC 350. Other intangibles also include $12.1 million allocated to customer relationships, $1.1 million allocated to developed technology, and $2.3 million allocated to backlog, which are being amortized over periods of 5 years to 7 years, 7 years, and 3 months to 9 months, respectively. Goodwill of $47.3 million and other intangibles of $24.0 million are allocated to the Food Processing Equipment Group for segment reporting purposes. Goodwill of $14.3 million and other intangibles of $8.2 million are allocated to the Commercial Foodservice Equipment Group for segment reporting purposes. Of these assets, goodwill of $52.4 million and intangibles of $28.0 million are expected to be deductible for tax purposes. Two purchase agreements include earnout provisions providing for a contingent payment due to the sellers for the achievement of certain targets. Two earnouts are payable to the extent certain sales and EBITDA targets are met with measurement dates ending between 2026 and 2027. The contractual obligation associated with the contingent earnout provisions recognized on the acquisition date amounts to $8.7 million. One purchase agreement includes a deferred payment due to the sellers payable in 2030. The contractual obligation associated with the deferred payment on the acquisition date amounts to $0.1 million. The company believes that information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, but the company is waiting for additional information necessary to finalize those fair values for the acquisitions completed during 2024. Certain intangible assets are preliminarily valued using historical information from the Food Processing Equipment Group and Commercial Foodservice Equipment Group and qualitative assessment of the businesses at acquisition date. Specifically, the company estimated the fair values of the intangible assets based on the percentage of purchase price assigned to similar intangible assets in previous acquisitions. Thus, the provisional measurements of fair values set forth above are subject to change. The company expects to complete the purchase price allocation as soon as practicable but no later than one year from the acquisition date.

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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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