Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2026

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Acquisitions and Divestitures

Note 3 - Acquisitions and Divestitures

Acquisitions:

On March 18, 2026, the Company acquired certain assets and assumed certain liabilities in the United States ("U.S.") and acquired 100% of the equity of the international affiliates of Bijur Delimon International ("Bijur Delimon"), a leading global designer and manufacturer of automated lubrication systems. Founded in 1872, Bijur Delimon operates manufacturing locations in the U.S., Europe and Asia Pacific. The acquisition of Bijur Delimon expands the Company's position in automated lubrication systems. The total purchase price for this acquisition was $124.4 million, net of cash acquired of $6.8 million, subject to customary post-closing adjustments. Results for Bijur Delimon are reported in the Industrial Motion segment. The Company incurred acquisition-related costs of $1.2 million to complete this acquisition. Acquisition costs are recorded in selling, general and administrative ("SG&A") expenses on the Consolidated Statements of Income.

The following table presents the preliminary purchase price allocation for the Bijur Delimon acquisition as of June 30, 2026:


	Initial Purchase Price Allocation
Assets:

Accounts receivable	$	13.7
Inventories	21.3

Other current assets	4.5
Property, plant and equipment	14.8

Goodwill	52.0
Other intangible assets	42.1
Other non-current assets	6.8
Total assets acquired	$	155.2
Liabilities:
Accounts payable, trade	$	4.5
Salaries, wages and benefits	6.6

Other current liabilities	10.7




Deferred income taxes	8.5
Other non-current liabilities	0.5
Total liabilities assumed	$	30.8
Net assets acquired	$	124.4

The following table summarizes the preliminary purchase price allocation at fair value for identifiable intangible assets acquired in 2026:


	2026
			Weighted- Average Life

Trade names	$	7.0	16 years
Technology and know-how	13.0		14 years
Customer relationships	22.0		14 years

Capitalized software	0.1		2 years
Total intangible assets	$	42.1

Note 3 - Acquisitions and Divestitures (continued)

In determining the fair value of the amounts above, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being valued. The estimation of fair value required judgment related to future net cash flows, discount rates, competitive trends, market comparisons and other factors. As a result, the Company utilized third-party valuation specialists to assist in determining the fair value of certain assets. Inputs were generally determined by considering independent appraisals and historical data, supplemented by current and anticipated market conditions.

The amounts in the table above represent the preliminary purchase price allocation for Bijur Delimon. This purchase price allocation, including the residual amount allocated to goodwill, is subject to change as additional information concerning final asset and liability valuations are obtained and management completes its reassessment of the measurement period procedures based on the results of the preliminary valuation. The purchase price allocation for Bijur Delimon is preliminary as a result of the proximity of the acquisition date to June 30, 2026, and as a result no elements of the purchase price allocation have been finalized. During the applicable measurement period, the Company will adjust assets and liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values for those assets or liabilities as of that date. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments had been completed on the acquisition date.

Divestitures:

On April 29, 2026, the Company entered into a definitive agreement to sell certain assets of its belts business to Gates Industrial Corporation plc ("Gates"). During the second quarter of 2026, certain assets of the belts business met the held for sale criteria, and the Company reclassified its assets accordingly. Assets held for sale of $24.0 million are included in other current assets on the Consolidated Balance Sheet. As a result of the carrying value of the business exceeding the estimated sales price less costs to sell, the Company recorded an impairment charge of $64.4 million for the three months ended June 30, 2026. The impairment charge is included in the impairment and restructuring charges line on the Consolidated Statements of Income. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2026. Operating results of the belts business are included in the Industrial Motion segment.

The following table provides the major captions of assets held for sale at June 30, 2026:



Assets:


Inventories, net	$	25.2
Property, plant and equipment, net	34.0

Intangible assets, net	29.2

Total assets	88.4
Less: impairment charge	(64.4)
Assets held for sale	$	24.0