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ACQUISITIONS | 12 Months Ended
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Dec. 31, 2020
Business Combinations [Abstract] |
ACQUISITION | ACQUISITIONS C OBRA P LASTICS, I NC. A CQUISITION On February 4, 2020 we acquired Cobra Plastics, Inc., or Cobra Plastics, a manufacturer and seller of injection molded plastic closures for a wide variety of consumer products, with a particular focus on the aerosol overcap market. The purchase price for this acquisition was $39.8 million, net of cash acquired, and was funded with revolving loan borrowings under our amended and restated senior secured credit facility. For this acquisition, we applied the acquisition method of accounting and recognized assets acquired and liabilities assumed at fair value as of the acquisition date, and we recognized goodwill of $18.6 million and a customer relationship intangible asset of $11.5 million. Cobra Plastics' results of operations were included in our closures business since the acquisition date and were not significant since such date. A LBÉA D ISPENSING B USINESS A CQUISITION On June 1, 2020, we acquired the dispensing operations of the Albéa Group, or the Albéa Dispensing Business, a leading global supplier of highly engineered pumps, sprayers and foam dispensing solutions to major branded consumer goods product companies in the beauty and personal care markets. The Albéa Dispensing Business operates a global network of ten manufacturing facilities across North America, Europe, South America and Asia. This acquisition was strategically important for us, as it expanded our closures franchise and, in particular, our dispensing systems operations. The Albéa Dispensing Business results of operations were included in our closures business as of the acquisition date. We acquired the Albéa Dispensing Business for a purchase price in cash of $901.0 million, net of cash acquired. The purchase price is subject to adjustment for working capital, other current assets and current liabilities and net indebtedness. We incurred acquisition related costs for the Albéa Dispensing Business totaling $19.3 million and $1.8 million for the years ended December 31, 2020 and 2019, respectively, which are included in selling, general and administrative expenses in our Consolidated Statements of Income. We funded the purchase price for this acquisition with term and revolving loan borrowings under our amended and restated senior secured credit facility. See Note 9 for further information. The initial purchase price has been allocated to assets acquired and liabilities assumed based on estimated fair values at the date of acquisition using valuation techniques including the income, cost and market approaches, primarily using Level 3 inputs (as defined in Note 10). The purchase price allocation is preliminary and subject to change pending a final valuation of the assets and liabilities, including property, plant and equipment and intangible assets, and the related tax impact of any adjustments to such valuations. In connection with this acquisition, we recorded a charge of $3.5 million related to the write-up of acquired inventory of the Albéa Dispensing Business as a result of purchase accounting. The allocated fair value of assets acquired and liabilities assumed are summarized as follows (in thousands):
| Trade accounts receivable |  | $ | 42,742 |
| Inventories |  | 41,102 |
| Property, plant and equipment |  | 189,549 |
| Other intangible assets |  | 283,000 |
| Other assets |  | 33,502 |
| Trade accounts payable and accrued liabilities |  | (62,930) |
| Deferred income tax liabilities |  | (91,482) |
| Debt and other liabilities |  | (31,420) |
| Total identifiable net assets |  | 404,063 |
| Goodwill |  | 496,984 |
| Cash paid at closing, net of cash acquired |  | $ | 901,047 |
Goodwill of $497.0 million consists largely of our increased capacity to serve our global customers and achieve operational synergies and has been assigned to our closures segment. A majority of the goodwill is not expected to be deductible for income tax purposes. Other intangible assets consist of customer relationships of $255.0 million with an estimated remaining life of 24 years and technology know-how of $28.0 million with an estimated remaining life of 8 years. Acquired property, plant and equipment are being depreciated on a straight-line basis with estimated remaining lives of up to 35 years. Our consolidated results of operations for the year ended December 31, 2020 included the results of the Albéa Dispensing Business since the acquisition date. Net sales from the Albéa Dispensing Business of $192.6 million were included in our Consolidated Statements of Income for the year ended December 31, 2020.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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