XML 33 R23.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Note 17 - Subsequent Events | 6 Months Ended
--- | ---
Jun. 30, 2024
Notes to Financial Statements |
Subsequent Events [Text Block] |
(17) | Subsequent Events
Acquisition of AJR Enterprises On July 1, 2024, the Company purchased 100% of the outstanding membership interests of AJR Enterprises, LLC, (“AJR”) pursuant to a Securities Purchase Agreement, for an aggregate purchase price of $110 million in cash. The purchase price was subject to adjustment based upon AJR’s estimated working capital at closing, and further adjustment when the final working capital is determined. A portion of the purchase price is being held in escrow to indemnify the Company against certain claims, losses, and liabilities. The Purchase Agreement contains customary representations, warranties, and covenants customary for transactions of this type. As part of the Securities Purchase Agreement, the Sellers as well as certain restricted parties have agreed to not compete with the Company for a period of seven years. AJR , is headquartered in St. Charles, IL, with additional manufacturing in the Dominican Republic. AJR brings us a strategic leadership position in the growing single-use safe patient handling space, as well as expertise in specialty fabrics and a very low-cost manufacturing operation. Acquisition costs associated with the transaction were approximately $422 thousand which was charged to expense in the three- and six-month periods ended June 30, 2024. These costs were primarily for legal and valuation services, which are reflected on the face of the Condensed Consolidated Statements of Comprehensive Income. Due to the timing of the AJR acquisition, the accounting for this business combination is incomplete. As a result, it is impracticable for the Company to disclose substantially all required disclosures of Accounting Standards Codification 805, Business Combinations, for this acquisition. Acquisition of Welch Fluorocarbon On July 15, 2024, the Company purchased 100% of the outstanding shares of common stock of Welch Fluorocarbon, Inc., (“Welch”) pursuant to a stock purchase agreement and related agreements, for an aggregate purchase price of $34.6 million in cash, plus up to an additional $6.0 million based upon the achievement of certain EBITDA targets of Welch for each of the 12-month periods ended December 31, 2024, 2025 and 2026. The purchase price was subject to adjustment based upon Welch’s estimated working capital at closing, and further adjustment when the final working capital is determined. A portion of the purchase price is being held in escrow to indemnify the Company against certain claims, losses, and liabilities. The Purchase Agreement contains customary representations, warranties, and covenants customary for transactions of this type. Founded in 1985 and headquartered in Dover, New Hampshire, Welch Fluorocarbon develops and manufactures thermoformed, and heat sealed implantable medical device components utilizing thin, high-performance films. Acquisition costs associated with the transaction were approximately $229 thousand which was charged to expense in the three- and six-month periods ended June 30, 2024. These costs were primarily for legal and valuation services, which are reflected on the face of the Condensed Consolidated Statements of Comprehensive Income. Due to the timing of the Welch Fluorocarbon acquisition, the accounting for this business combination is incomplete. As a result, it is impracticable for the Company to disclose substantially all required disclosures of Accounting Standards Codification 805, Business Combinations, for this acquisition. Funding of Acquisitions Both the above noted acquisitions were funded through borrowings under the Company’s Third Amended and Restated Credit Agreement. Subsequent to these acquisitions, as of July, 15, 2024, the Company had approximately $179.2 million outstanding under the Third Amended and Restated Credit Agreement, $115 million of which was under its secured term loan and $64.2 million of which was under its revolving credit facility. As of July 15, 2024, after reducing the available amount by certain letters of credit, the Company had approximately $85.1 million available to draw under its revolving credit facility. As of July 15, 2024, until December 31, 2024, the Company may draw up to an additional $10 million of borrowing under its secured term loan.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/855/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 855 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483399/855-10-50-2 + Details
Name: | us-gaap_SubsequentEventsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration