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Acquisition of European Differentiated Surfactants business
 12 Months Ended
Dec. 31, 2016
Business Combinations [Abstract]  
Acquisition of European Differentiated Surfactants business

Note 4.    Acquisition of European Differentiated Surfactants business

 

On December 30, 2016, the Company acquired the European Differentiated Surfactants business (“Huntsman”) from Huntsman Investments (Netherlands) B.V.. We purchased the business for a total consideration of $199.2 million subject to working capital adjustments. We acquired the business in order to continue our strategy of building our presence in the Personal Care and Home Care markets which forms part of our Performance Chemicals segment.

 

There were no Huntsman revenue or earnings included in the consolidated income statement of the Company since the acquisition date.

 

The following table summarizes the calculations of the total purchase price and the estimated allocation of the purchase price to the assets acquired and liabilities assumed for the business:

 

(in millions)

    Huntsman  

Goodwill and other intangible assets

    $ 107.4   

Fixed assets

      76.5   

Other net assets acquired

      15.3   
  

 

 

  

Purchase price, net of cash acquired

    $ 199.2   
  

 

 

  

 

The measurement periods for the valuation of assets acquired and liabilities assumed ends as soon as information on the facts and circumstances that existed as of the acquisition dates becomes available, but does not exceed twelve months. We have reviewed the acquired intangibles associated with the acquisition and concluded that the main identifiable asset is in relation to customer lists. The fair value of the acquired customers lists and acquired fixed assets has not been finalized and accordingly the excess of the purchase consideration over net assets acquired has been classified as goodwill.

 

Huntsman, and the associated goodwill, are included within our Performance Chemicals segment for management and reporting purposes. There is currently no goodwill amortizable for tax purposes.

 

Supplemental unaudited pro forma information

 

For illustrative purposes only pro forma information of the enlarged group is provided below but is not necessarily indicative of what the financial position or results of operations would have been had the Huntsman acquisition been completed as part of the Company from January 1, 2015. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport to project, the future financial position of operating results of the enlarged group.

 

(in millions, except per share data)

    2016      2015  

Net sales

    $ 1,008.0       $ 1,269.8   

Net income

    $ 88.5       $ 121.8   

Earnings per share – basic

    $ 3.69       $ 5.06   

– diluted

    $ 3.62       $ 4.95   

 

Adjustments to the unaudited pro forma financial information includes amortization in respect of the acquired other intangible assets, and the acquisition-related costs incurred in respect of all these transactions.