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Note J - Acquisitions
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Business Combination Disclosure [Text Block]
Note J – Acquisitions
 
As of
October
2016,
the Company, through its wholly-owned subsidiary Patterson Pump Company (“Patterson”), acquired substantially all of the assets and certain liabilities of Morrison Pump Company (“Morrison”). The purchase price consisted of cash and deferred payments. The deferred payments represent the estimated fair value of the additional variable cash consideration payable in connection with the acquisition that is contingent upon the achievement of certain performance milestones. The Company estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled, which are considered to be level
3
inputs. Founded in
1999,
Morrison is a growing manufacturer of and service provider for large capacity pumping systems primarily for the municipal flood control and water management markets. Morrison has steadily expanded its product designs and service capabilities in recent years to become a notable provider in North America and South America, the Middle East and Asia. Morrison also has developed and manufactures some innovative components that should benefit from its integration with Patterson. Morrison’s sales for the full year
2016
were approximately
$5.0
million.
 
The allocation of the purchase price of Morrison to the business acquired is preliminary and will be finalized pending completion of purchase accounting matters. Based on the preliminary purchase price allocation for this acquisition, goodwill of
$5.2
million was recorded.
 
The results of operations of Morrison have been included in Gorman-Rupp’s consolidated results since
October
2016.
Supplemental pro forma information has not been provided as the acquisition did not have a material impact on the Company’s consolidated results of operations.
 
As of
August
2015,
the Company’s subsidiary, Gorman-Rupp Europe B.V., acquired substantially all of the assets and certain liabilities of Hydro+ SA (“Hydro”) and Hydro+ Rental SPRL (“Hydro Rental”), subsequently renamed Gorman-Rupp Rental SPRL, based near Namur, Belgium. The Company assumed
$1.9
million in bank debt, which was subsequently paid off in
2015.
Hydro has been the Company’s Belgian pump and pump systems distributor since
1998,
and in
2011
formed Hydro Rental to expand pump and pump system rentals in the same region. Hydro’s principal products are centrifugal pumps supplied by the Company, and Hydro has begun converting some of these pumps into packaged pump station systems tailored for its European market.
 
The Company recognized customer relationships of
$748,000,
technology and drawings of
$130,000,
tradenames and trademarks of
$70,000
and goodwill of
$2.4
million related to the asset acquisition of Hydro and Hydro Rental.
 
The results of operations of both Hydro companies have been included in Gorman-Rupp’s consolidated results since
August
2015.
 
In
June
2014,
the Company, through a newly established entity, Bayou City Pump Company (“Bayou”), acquired substantially all of the assets and certain liabilities of Bayou City Pump, Inc. (“BCP”). Founded in
1973,
Bayou is a leading manufacturer of and service provider for highly-reliable and energy-efficient vertical turbine pumping systems primarily for the inland and coastal marine liquid petroleum and chemical transportation market.
 
The Company recognized customer relationships of
$4.1
million, technology and drawings of
$830,000,
tradenames and trademarks of
$370,000
and goodwill of
$4.7
million related to the asset acquisition of BCP.
 
The results of operations of Bayou have been included in Gorman-Rupp’s consolidated results since
June
2014.