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ACQUISITIONS AND DIVESTITURES | 12 Months Ended
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Dec. 31, 2020
ACQUISITIONS AND DIVESTITURES |
ACQUISITIONS AND DIVESTITURES | ​ NOTE 3—ACQUISITIONS AND DIVESTITURES Business combinations Well Chemical Services Acquisition On September 30, 2019, the Company acquired a well chemical services business (“WCS”), for $10.0 million, funded with cash on hand (the “WCS Acquisition”). WCS provides advanced water treatment solutions, specialized stimulation flow assurance and integrity additives and post-treatment monitoring service in the U.S. This acquisition expanded the Company’s service offerings in oilfield water treatment across the full life-cycle of water, from pre-fracturing treatment through reuse and recycling. The WCS Acquisition was accounted for as a business combination under the acquisition method of accounting. When determining the fair values of assets acquired and liabilities assumed, management made significant estimates, judgments and assumptions. These estimates, judgments and assumptions and valuation of the inventory and property and equipment acquired, customer relationships, and current liabilities were finalized as of December 31, 2019. The assets acquired and liabilities assumed are included in the Company’s Oilfield Chemicals segment. The following table summarizes the consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition: ​
​ | ​ | ​ | ​
Purchase price allocation |  | Amount
Consideration transferred |  | (in thousands)
Cash paid | ​ | $ | 10,000
Total consideration transferred |  | ​ | 10,000
Less: identifiable assets acquired and liabilities assumed |  | ​ |
Inventory |  | ​ | 5,221
Property and equipment |  | ​ | 4,473
Customer relationships |  | ​ | 476
Current liabilities | ​ | ​ | (170)
Total identifiable net assets acquired |  | ​ | 10,000
Fair value allocated to net assets acquired | ​ | $ | 10,000
​ Pro Well Acquisition On November 20, 2018, the Company acquired Pro Well Testing and Wireline, Inc. (“Pro Well”) with an initial payment of $12.4 million, funded with cash on hand (the “Pro Well Acquisition”). During March 2019, upon final settlement, the purchase price was revised to $11.8 million. This acquisition expanded the Company’s flowback footprint into New Mexico and added new strategic customers. The Pro Well Acquisition was accounted for as a business combination under the acquisition method of accounting. When determining the fair values of assets acquired and liabilities assumed, management made significant estimates, judgments and assumptions. Management estimated that total consideration paid exceeded the fair value of the net assets acquired by $1.1 million, with the excess recorded as goodwill. The goodwill recognized was primarily attributable to expanding the Company’s flowback footprint into New Mexico and adding new strategic customers. The assets acquired, liabilities assumed and the results of operations of the acquired business are included in the Company’s Water Services segment. The goodwill acquired is deductible for tax purposes. The following table summarizes the consideration transferred and the estimated fair value of identified assets acquired and liabilities assumed at the date of acquisition: ​
​ | ​ | ​ | ​
Purchase price allocation |  | Amount
Consideration transferred |  | (in thousands)
Cash paid | ​ | $ | 11,754
Total consideration transferred |  | ​ | 11,754
Less: identifiable assets acquired and liabilities assumed |  | ​ |
Working capital |  | ​ | 1,051
Property and equipment |  | ​ | 6,588
Customer relationship intangible assets |  | ​ | 3,000
Total identifiable net assets acquired |  | ​ | 10,639
Goodwill | ​ | ​ | 1,115
Fair value allocated to net assets acquired | ​ | $ | 11,754
​ During the first quarter of 2020, Select impaired 100% of its goodwill, including the goodwill resulting from the Pro Well acquisition (See Note 4 – Impairments and Other Costs and Note 9 – Goodwill and Other Intangible Assets). Divestitures Affirm and Canadian Operations Divestitures During the year ended December 31, 2019, the Company closed on four sale transactions and wound down the remaining Affirm and Canadian operations. The Company sold property and equipment with a combined net book value of $18.6 million and assigned contracts to the buyers. Additionally, two of the four transactions included the assignment of working capital. The following table summarizes sales details for each of the four transactions: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Date of Divestiture | ​ | Entity | ​ | Initial Net Proceeds | ​ | Working Capital True Up | ​ | Adjusted Net Proceeds | ​ | Working Capital Status at December 31, 2019 | ​ | (Gain)/loss for the year ended December 31, 2019
​ | ​ | ​ | ​ | (in thousands)
February 26, 2019 | ​ | Affirm | ​ | $ | 10,982 | ​ | $ | (208) | ​ | $ | 10,774 | ​ | Final | ​ | $ | 208
June 28, 2019 | ​ | Affirm | ​ | ​ | 6,968 | ​ | ​ | — | ​ | ​ | 6,968 | ​ | Final | ​ | ​ | (1,646)
March 19, 2019 | ​ | Canada | ​ | ​ | 4,975 | ​ | ​ | (302) | ​ | ​ | 4,673 | ​ | Final | ​ | ​ | 5,013
April 1, 2019 | ​ | Canada | ​ | ​ | 2,242 | ​ | ​ | — | ​ | ​ | 2,242 | ​ | Final | ​ | ​ | 101
​ In connection with the Affirm crane operation divestiture in 2019, no gain or loss was initially recognized and goodwill was reduced by $2.6 million. Additionally, during 2019, the Company recorded an impairment of the remaining Affirm goodwill of $4.4 million (see Note 9—Goodwill and Other Intangible Assets).

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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