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Note 2 - Acquisitions
 12 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]

2. Acquisitions


The Company’s recent acquisitions are strategically significant to the future growth prospects of the Company, however at the time of the acquisition and June 30, 2015, we concluded, that historical results of the acquired Companies both individually and in the aggregate, were immaterial to the Company’s consolidated financial results and therefore additional proforma disclosures are not presented.


On September 4, 2014, the Company acquired Enginetics Corporation (“Enginetics”), a leading producer of aircraft engine components for all major aircraft platforms. This investment complements our Engineering Technologies Group and allows us to provide broader solutions to the aviation market.


The Company paid $55.0 million in cash for 100% of the outstanding stock of MPE Aeroengines Inc, of which Enginetics is a wholly owned subsidiary and has recorded intangible assets of $10.6 million, consisting of $9.1 million of customer relationships which are expected to be amortized over a period of fifteen years and $1.5 million of trademarks which are indefinite-lived. Acquired goodwill of $34.8 million is not deductible for income tax purposes due to the nature of the transaction. The Company finalized the purchase price allocation during the quarter end June 30, 2015.


The components of the fair value of the Enginetics acquisition, including final allocation of the purchase price and subsequent measurement period adjustments at June 30, 2015, are as follows (in thousands):


Enginetics

  

Preliminary Allocation

   

Adjustments

    

Final

  

Fair value of business combination:

                        

Cash payments

   $ 55,021     $ -     $ 55,021  

Less: cash acquired

     (113 )     -       (113 )

Total

   $ 54,908     $ -     $ 54,908  

Identifiable assets acquired and liabilities assumed:

                        

Current Assets

   $ 12,350     $ (216 )   $ 12,134  

Property, plant, and equipment

     8,881       (73 )     8,808  

Identifiable intangible assets

     10,600       -       10,600  

Goodwill

     32,797       1,993       34,790  

Other non-current assets

     158       -       158  

Liabilities assumed

     (2,826 )     (2,623 )     (5,449 )

Deferred taxes

     (7,052 )     919       (6,133 )

Total

   $ 54,908     $ -     $ 54,908  

On June 20, 2014, the Company acquired all of the outstanding stock of Ultrafryer Systems, Inc. (“Ultrafryer”), a producer of commercial deep fryers for restaurant and commercial installations. This investment complements our Food Service Equipment Group’s product line and allows us to provide broader solutions to restaurant chains and commercial food service installations.


The Company paid $23.0 million in cash for 100% of the stock of Ultrafryer and has recorded intangible assets of $7.6 million, consisting of $2.4 million of trademarks which are indefinite-lived, $4.9 million of customer relationships, and $0.3 million of other intangible assets which are expected to be amortized over a period of fifteen and three to five years, respectively. Acquired goodwill of $11.0 million is not deductible for income tax purposes due to the nature of the transaction.


The components of the fair value of the Ultrafryer acquisition, including final allocation of the purchase price and subsequent measurement periods adjustments, related to the purchase of land and building, at June 30, 2015, are as follows (in thousands):


Ultrafryer

  

Preliminary

Allocation at

June 30, 2014

    

Adjustments

    

Final

  

Fair value of business combination:

                        

Cash payments

   $ 20,745     $ 2,241     $ 22,986  

Less: cash acquired

     (20 )     -       (20 )

Total

   $ 20,725     $ 2,241     $ 22,966  

Identifiable assets acquired and liabilities assumed:

                        

Current Assets

   $ 5,871     $ 50     $ 5,921  

Property, plant, and equipment

     1,259       2,100       3,359  

Identifiable intangible assets

     7,612       -       7,612  

Goodwill

     10,930       91       11,021  

Liabilities assumed

     (1,733 )     -       (1,733 )

Deferred taxes

     (3,214 )     -       (3,214 )

Total

   $ 20,725     $ 2,241     $ 22,966