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Acquisitions Acquisitions
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6 Months Ended |
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Jun. 28, 2014
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| Business Combinations [Abstract] | |
| Acquisitions |
Note 4 – Acquisitions
On June 16, 2014, the Company acquired 100 percent of privately held Whale, which is based in Bangor, Northern Ireland, and is a manufacturer of water movement and heating systems for the marine, recreational vehicle, industrial and other markets. The Company believes this acquisition will allow the Company to more fully compete across a number of parts and accessories product categories, enable entry into attractive adjacent markets and expand the global presence of the marine service, parts and accessories businesses. Whale will be managed as part of the Company's marine service, parts and accessories businesses within the Marine Engine segment.
The net cash consideration paid by the Company to acquire Whale was $29.1 million, which included the payments of $10.0 million to retire acquiree debt. The preliminary recording of the fair value of the assets acquired resulted in $12.7 million of identifiable intangible assets and $5.4 million of goodwill, which will not be deductible for tax purposes. Included in the identifiable intangible assets were customer relationships, trade names and patents and proprietary technology for $6.4 million, $3.9 million and $2.4 million, respectively. The Company considers its trade names to be indefinite-lived intangible assets, whereas the amounts assigned to Whale's customer relationships and patent and proprietary technology will be amortized over the estimated useful life of 14 years and 5 years, respectively. Due to the recent timing of the acquisition, these amounts are estimates and are subject to change within the measurement period as the Company's fair value assessments are finalized.
This acquisition was not and would not have been material to the Company's net sales, results of operations or total assets during the three months and six months ended June 28, 2014 and June 29, 2013, respectively. Accordingly, the Company's consolidated results from operations do not differ materially from historical performance as a result of this acquisition, and therefore, pro-forma results are not presented.
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