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ACQUISITIONS | 12 Months Ended
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Dec. 31, 2015
ACQUISITIONS [Abstract] |
ACQUISITIONS |
3. | ACQUISITIONS
On January 30, 2015, IPG acquired all of the outstanding equity interests of the Plant Equipment Group (“PEG”) from TAKKT America, a business-to-business direct marketer of maintenance, repair and operations (“MRO”) products with operations in North America for approximately $25.9 million in cash, $1.9 million of which was placed into an escrow account for one year to secure the sellers’ indemnification obligations under the purchase agreement. This acquisition expanded the IPG segment presence in the MRO market in North America. The acquisition is considered an asset acquisition for tax purposes and as such, the goodwill resulting from this acquisition is tax deductible. The total associated transaction costs of the acquisition were $0.4 million and were recorded in selling, general and administrative expense. The acquisition was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and the liabilities assumed be recognized at their fair values as of the acquisition date. The following table summarizes the fair value of the assets acquired and liabilities assumed (in millions):
Purchase price |  | $ | 25.9 |
Less: |  |  |  |
Cash |  |  | 1.1 |
Accounts receivable |  |  | 10.0 |
Inventory |  |  | 11.8 |
Fixed assets |  |  | 1.2 |
Prepaid expenses |  |  | 0.6 |
Leases, net |  |  | 0.8 |
Client lists |  |  | 2.1 |
Trademarks |  |  | 4.1 |
Accounts payable |  |  | (7.5 | )
Accrued expenses |  |  | (3.7 | )
Other liabilities |  |  | (0.2 | )
Goodwill |  | $ | 5.6 |
The amount allocated to goodwill reflects the benefits the Company expects to realize from the growth of the acquisition’s operations. For the twelve months ended December 31, 2015 PEG generated approximately $89.1 million in revenue and approximately $1.1 million of pretax income. The Company’s unaudited pro forma revenue and net loss for the years ended December 31, 2015 and 2014 below have been prepared as if PEG had been purchased on January 1, 2014 (in millions).
|  | Unaudited Pro Forma |
|  | 2015 |  |  | 2014 |
Revenue |  | $ | 1,861.5 |  |  | $ | 2,204.4 |
Net loss |  | $ | (48.3 | ) |  | $ | (32.4 | )
The unaudited pro forma financial information above is not necessarily indicative of what the Company’s consolidated results actually would have been if the acquisitions had been completed at the beginning of the respective periods. In addition, the unaudited pro forma information above does not attempt to project the Company’s future results. On June 12, 2014, the Company acquired Misco Solutions (f/k/a SCC Services B.V.), a supplier of business-to-business IT products and services with operations in the Netherlands. The purchase price (after giving effect to the conversion of Euros to U.S. dollars) was approximately $7.3 million in cash (5.4 million Euro), $0.6 million (0.4 million Euro) of which was placed into an escrow account for one year to secure the sellers’ indemnification obligations under the purchase agreement. The Company completed its purchase price allocation and recorded assets of approximately $1.5 million for Goodwill, $1.0 million for Client Lists and $0.2 million for Trademarks. The operating results of Misco Solutions are included in the accompanying consolidated statements of operations from the date of acquisition in the EMEA segment. The Company has determined that this was not a material acquisition for further financial statement disclosure purposes.

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