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Acquisition and Divestitures | 12 Months Ended
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Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Acquisition and Divestitures | Acquisitions and Divestitures Acquisition of M&F Management and Financing GmbH On February 29, 2024, we acquired 100% of M&F Management and Financing GmbH ("M&F"), the parent company of TCS EMEA GmbH ("TCS"), as we seek to accelerate growth in the EMEA region. Based in Austria, TCS was Tennant Company's largest Central and Eastern Europe distributor. The acquisition gives Tennant a knowledgeable and experienced sales force and an established direct channel into countries including Romania, Hungary, Czech Republic, and Slovakia, along with an expanded network in Austria, Switzerland, Poland, and other nations in the region, as well as the Middle East and Africa. Our consolidated financial results for the year ended December 31, 2024 include $22.0 million of revenue and $0.2 million of net income related to TCS. The proforma impact of this acquisition is immaterial to our operations. The purchase price has been allocated based on the estimated fair value of assets acquired and liabilities assumed at the date of the acquisition. The following table summarizes the fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:
| March 31, 2024 |  | Adjustments |  | June 30, 2024 |  | Adjustments |  | December 31, 2024
Components of purchase price: |  |  |  |  |  |  |  |  |
Cash paid | $ | 30.8 |  |  | $ | 0.2 |  |  | $ | 31.0 |  |  | $ | — |  |  | $ | 31.0 |
Settlement of preexisting transactions | 3.9 |  |  | — |  |  | 3.9 |  |  | — |  |  | 3.9 |
Total purchase price | 34.7 |  |  | 0.2 |  |  | 34.9 |  |  | — |  |  | 34.9 |
ASSETS |  |  |  |  |  |  |  |  |
Cash | 5.3 |  |  | 0.1 |  |  | 5.4 |  |  | — |  |  | 5.4 |
Other current assets | 8.0 |  |  | (0.7) |  |  | 7.3 |  |  | 1.6 |  |  | 8.9 |
Intangible assets subject to amortization |  |  |  |  |  |  |  |  |
Customer lists | 13.6 |  |  | (0.4) |  |  | 13.2 |  |  | — |  |  | 13.2 |
Backlog | 0.6 |  |  | — |  |  | 0.6 |  |  | — |  |  | 0.6 |
Other assets | 5.3 |  |  | 0.3 |  |  | 5.6 |  |  | 0.1 |  |  | 5.7 |
Total identifiable assets acquired | 32.8 |  |  | (0.7) |  |  | 32.1 |  |  | 1.7 |  |  | 33.8 |
LIABILITIES |  |  |  |  |  |  |  |  |
Current liabilities | (1.5) |  |  | — |  |  | (1.5) |  |  |  |  | (1.6) |
Long-term liabilities | (5.0) |  |  | (0.2) |  |  | (5.2) |  |  | (1.5) |  |  | (6.7) |
Total identifiable liabilities assumed | (6.5) |  |  | (0.2) |  |  | (6.7) |  |  | (1.6) |  |  | (8.3) |
Net assets acquired | 26.3 |  |  | (0.9) |  |  | 25.4 |  |  | 0.1 |  |  | 25.5 |
Goodwill | $ | 8.4 |  |  | $ | 1.1 |  |  | $ | 9.5 |  |  | $ | (0.1) |  |  | $ | 9.4 |
The total purchase price includes cash paid of $31.0 million and the settlement of $3.9 million of preexisting transactions. In connection with the acquisition, we paid cash totaling $30.8 million on the acquisition date of February 29, 2024 and $0.2 million in the second quarter of 2024. The adjustments made to the purchase price allocation in the fourth quarter of 2024 relate to the finalization of the impacts associated with income taxes. The goodwill is not expected to be deductible for income tax purposes. The expected lives of the acquired intangible assets is 3 months and 10 years for backlog and customer lists, respectively, and are being amortized on a straight-line basis. Sale of Building During the second quarter of 2022, we sold a building located in Golden Valley, Minnesota. The resulting pre-tax gain was $3.7 million and is reflected as a gain on sale of assets in the consolidated statements of income. Proceeds from the sale of assets were $4.1 million.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent + Details
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