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ACQUISITION
 9 Months Ended
Sep. 30, 2014
Business Combinations [Abstract]  
ACQUISITION
2.
ACQUISITION
 
In February 2013, the Company completed the acquisition of certain assets of the tank and trailer business of Beall Corporation (“Beall”), a Portland, Oregon-based manufacturer of aluminum tank trailers and related equipment. Beall began Chapter 11 reorganization proceedings in September 2012, followed by a bankruptcy-court approved auction of its assets in December 2012. The Company was the winning bidder for certain assets of Beall’s tank and trailer business, including equipment, inventory, certain product designs, intellectual property and other related assets. The aggregate consideration paid by the Company for the acquired assets and the assumed liabilities was $13.9 million and was allocated to the opening balance sheet as follows (in thousands):
 
Current assets
 
$
1,035
 
Property, plant and equipment
 
 
2,714
 
Intangibles
 
 
8,860
 
Goodwill
 
 
1,784
 
Total assets
 
$
14,393
 
 
 
 
 
 
Current liabilities
 
$
(462)
 
Total liabilities
 
$
(462)
 
 
 
 
 
 
Acquisition
 
$
13,931
 
 
Intangible assets of $8.9 million were recorded as a result of the purchase of the Beall assets. The intangible assets consist of the following (in thousands):
 
 
 
Amount
 
Useful Life
 
Tradenames and Trademarks
 
$
1,622
 
20 years
 
Technology
 
 
1,217
 
8 years
 
Customer relationships
 
 
6,021
 
8 years
 
 
 
$
8,860
 
 
 
 
Goodwill of $1.8 million was recorded as a result of the Beall asset purchase. Goodwill is comprised of operational synergies that are expected to be realized in both the short and long-term and the opportunity to complement our existing Diversified Products business through product line expansion and geographic growth. The Company expects the amount recorded as goodwill to be fully deductible for tax purposes.
 
In connection with the Beall asset purchase, the Company entered into a separate ten year capital lease agreement for Beall’s manufacturing facility in Portland, Oregon, with payments totaling approximately $4.7 million for such ten year period.
 
The Company incurred various costs related to recent acquisitions including professional fees for diligence, legal and accounting services. These costs have been recorded as Acquisition Expenses in the Condensed Consolidated Statements of Operations.