Quarterly report pursuant to Section 13 or 15(d)

Acquisitions

v3.4.0.3
Acquisitions
 3 Months Ended
Apr. 02, 2016
Business Combinations [Abstract]  
Acquisitions
Acquisitions

On January 20, 2016, the Company acquired 100 percent of privately held Cybex, a leading manufacturer of commercial fitness equipment, which is based in Medway, Massachusetts. Cybex offers a full line of cardiovascular and strength products and had unaudited sales in 2015 of approximately $169 million. The addition of Cybex expands the Fitness segment's participation in key markets, including commercial fitness, and adds to the Company's manufacturing footprint to meet current and future demand more effectively. Cybex also increases the breadth and depth of the segment's product portfolio. Cybex is managed within the Company's Fitness segment.

The following table is a summary of the assets acquired, liabilities assumed and net cash consideration paid for the Cybex acquisition during 2016:
(in millions)
Fair Value (B)
 
Useful Life
Accounts and notes receivable
$
25.9

 
 
Inventory
13.5

 
 
Goodwill (A)
81.9

 
 
Trade names
38.6

 
Indefinite
Customer relationships
41.8

 
16 years
Patents and proprietary technology
3.1

 
5 years
Property and equipment
39.8

 
 
Other assets
6.0

 
 
Total assets acquired
250.6

 

Total liabilities assumed
55.6

 
 
Net cash consideration paid
$
195.0

 
 

(A) The goodwill recorded for the acquisition of Cybex is not deductible for tax purposes.
(B) Due to the recent timing of this acquisition, these amounts are preliminary and are subject to change within the measurement period as the Company finalizes its fair value estimates.

This acquisition is not material to the Company's net sales, results of operations or total assets during any period presented. 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.