XML 20 R8.htm IDEA: XBRL DOCUMENT v3.5.0.2
Note 2 - Acquisitions
 3 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
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 September 30, 2016, 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.
 
During the second quarter of fiscal year 2016, the Company acquired Northlake Engineering, Inc., (“Northlake”), a Wisconsin-based designer, manufacturer and distributor of high reliability electromagnetic products and solutions serving the North America power distribution and medical equipment markets. Northlake reports to our Electronics segment.
 
The Company paid $13.7 million in cash for 100% of the outstanding stock of Northlake and has recorded intangible assets of $6.8 million, consisting of $4.1 million of customer relationships which primarily are expected to be amortized over a period of twelve and half years, $2.4 million of trademarks which are indefinite-lived and $0.3 million of non-compete which are expected to amortized over a period of five years. Acquired goodwill of $5.1 million is deductible for income tax purposes. The Company finalized the purchase price allocation during the quarter ending June 30, 2016.
 
The components of the fair value of the Northlake acquisition, including the allocation of the purchase price at June 30, 2016, are as follows (in thousands):
 
 
 
Preliminary
Allocation
 
 
Adjustments
 
 
Final
 
Fair value of business combination:
                        
Cash payments
   $ 13,859     $ 156     $ 14,015  
Less: cash acquired
     (315 )     -       (315 )
Total
   $ 13,544     $ 156     $ 13,700  
Identifiable assets acquired and liabilities assumed:
                        
Current assets
   $ 2,810     $ -     $ 2,810  
Property, plant, and equipment
     1,407       -       1,407  
Identifiable intangible assets
     4,124       2,700       6,824  
Goodwill
     7,821       (2,700 )     5,121  
Other non-current assets
     158       -       158  
Liabilities assumed
     (2,620 )     -       (2,620 )
Expected final payments
     (156 )     156       -  
Total
   $ 13,544     $ 156     $ 13,700