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Acquisition | 6 Months Ended
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Jun. 30, 2021
Business Combinations [Abstract] |
Chem32 Acquisition | 7. Acquisition: On March 1, 2021 (the “Closing Date”), the Company completed the acquisition of Chem32, LLC (“Chem32”) as part of a stock transaction (the “Acquisition”) for $44,000 in cash. The net cash paid on the closing date by the Company was $41,994, after certain customary adjustments for indebtedness, working capital, cash and a holdback amount pursuant to the agreement. Based in Orange, Texas, Chem32 is a leader in ex situ pre-sulfiding and pre-activation for hydro-processing catalysts. The Acquisition was accounted for using the acquisition method of accounting. Under the acquisition method, the purchase price was allocated to the identifiable net assets acquired based on the fair values of the identifiable assets acquired and liabilities assumed as of the Closing Date. The excess of the purchase price over fair values of the identifiable net assets acquired was recorded to goodwill. The following table sets forth the calculation and preliminary allocation of the purchase price to the identifiable net assets acquired with respect to the Acquisition:
|  | Provisional Purchase Price Allocation |  |  |  |
Cash paid, net of cash acquired |  | $ | 41,994 |  |  |  |  |
Holdback |  | 2,000 |  |  |  |  |
Total consideration, net of cash acquired |  | $ | 43,994 |  |  |  |  |
Recognized amounts of identifiable assets acquired and liabilities assumed: |  |  |  |  |  |
Receivables |  | $ | 1,368 |  |  |  |  |
Inventories |  | 204 |  |  |  |  |
Prepaid and other current assets |  | 351 |  |  |  |  |
Property, plant and equipment |  | 5,046 |  |  |  |  |
Other long-term assets |  | 38 |  |  |  |  |
Fair value of assets acquired |  | 7,007 |  |  |  |  |
Accounts payable |  | 207 |  |  |  |  |
Accrued liabilities |  | 452 |  |  |  |  |
Fair value of net identifiable assets acquired |  | 6,348 |  |  |  |  |
Goodwill |  | 37,646 |  |  |  |  |
|  | $ | 43,994 |  |  |  |  |
The valuation of the identifiable assets and liabilities included in the table above is preliminary and is subject to change, as the Company is in the process of evaluating the information required to determine the fair values of certain identifiable assets and liabilities acquired, including inventory, property, plant and equipment and intangible assets. An increased portion of the purchase price allocated to the identifiable net assets acquired will reduce the amount recognized for goodwill and may result in increased cost of goods sold, depreciation and/or amortization expense. Adjustments to the provisional amounts during the measurement period that result in changes to depreciation, amortization or other income effects will be recognized in the reporting period(s) in which the adjustments are determined. The Company’s condensed consolidated financial statements include Chem32’s results of operations from the Closing Date through June 30, 2021. Net sales and net income attributable to Chem32 during this period are included in the Company’s condensed consolidated statement of income and are immaterial for the periods presented. Pro forma financial information has not been presented as it is immaterial for the three and six months ended June 30, 2021 and 2020. The Company believes that the Acquisition will enable it to offer a more robust portfolio of services within the refining industry leveraging our existing relationships, which contributed to a total purchase price that resulted in the recognition of goodwill. The Company assigned all of the goodwill to the Ecoservices segment. The goodwill associated with the Acquisition is deductible for tax purposes.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: 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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