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Business Acquisitions and Investments | 9 Months Ended
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Sep. 30, 2016
Business Acquisitions and Investments [Abstract] |
Business Acquisitions and Investments |
Note 3. | Business Acquisitions and Investments
In May 2016, we acquired the North American automotive ignition wire business of General Cable Corporation for approximately $67.5 million, subject to post-closing adjustments. The acquisition was paid for in cash funded by our revolving credit facility with JPMorgan Chase, as agent. The acquisition includes the purchase of certain assets and the assumption of certain liabilities of General Cable Corporation’s (and certain of its affiliates) automotive ignition wire business in North America as well as 100% of the equity interests of a General Cable subsidiary in Nogales, Mexico. Revenues generated from the acquired business were approximately $96 million for the year ended December 31, 2015. The following table presents the allocation of the purchase price to the assets acquired and liabilities assumed, based on their fair values (in thousands):
Purchase Price |  |  |  |  | $ | 67,451 |
Assets acquired and liabilities assumed: |  |  |  |  |  |  |
Receivables |  | $ | 3,130 |  |  |  |  |
Inventory |  |  | 12,567 |  |  |  |  |
Other current and noncurrent assets (1) |  |  | 334 |  |  |  |  |
Property, plant and equipment, net |  |  | 2,660 |  |  |  |  |
Intangible assets |  |  | 42,440 |  |  |  |  |
Goodwill |  |  | 12,516 |  |  |  |  |
Current liabilities |  |  | (6,196 | ) |  |  |  |
Net assets acquired |  |  |  |  |  | $ | 67,451 |
| (1) | Other current and noncurrent assets includes $0.2 million of cash acquired.
Intangible assets acquired of $42.4 million consists of customer relationships of $39.4 million that will be amortized on a straight-line basis over the estimated useful life of 15 years; a non-compete agreement of $2.2 million that will be amortized on a straight-line basis over the estimated useful life of 5 years; and a supply agreement of $0.8 million that will be amortized on a straight-line basis over the estimated useful life of 1 year. Goodwill of $12.5 million was allocated to the Engine Management Segment and is deductible for income tax purposes. The goodwill reflects relationships, business specific knowledge and the replacement cost of an assembled workforce associated with personal reputations, as well as the value of expected synergies. Revenues included in our consolidated statements of operations for the acquisition was $31.3 million from the date of acquisition through September 30, 2016. Pro Forma Information (Unaudited) The following table summarizes certain supplemental unaudited pro forma financial information which was prepared as if the acquisition of the North American automotive ignition wire business of General Cable Corporation described above had occurred as of January 1, 2015. The unaudited pro forma financial information was prepared for comparative purposes only and does not purport to be indicative of what would have occurred had the acquisition been made at that time, or of results which may occur in the future. Supplemental unaudited pro forma financial information for the acquisition is as follows (in thousands):
|  | Three Months Ended September 30, 2016 |  |  | Three Months Ended September 30, 2015 |
|  | Reported |  |  | Pro Forma |  |  | Reported |  |  | Pro Forma |
Revenues |  | $ | 300,795 |  |  | $ | 300,795 |  |  | $ | 270,037 |  |  | $ | 293,696 |
Net earnings |  |  | 20,630 |  |  |  | 21,037 |  |  |  | 18,466 |  |  |  | 18,707 |
|  | Nine Months Ended September 30, 2016 |  |  | Nine Months Ended September 30, 2015 |
|  | Reported |  |  | Pro Forma |  |  | Reported |  |  | Pro Forma |
Revenues |  | $ | 828,683 |  |  | $ | 868,014 |  |  | $ | 767,008 |  |  | $ | 842,422 |
Net earnings |  |  | 52,078 |  |  |  | 53,666 |  |  |  | 40,792 |  |  |  | 41,757 |

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