Quarterly report pursuant to Section 13 or 15(d)

Acquisition (Tables)

v3.10.0.1
Acquisition (Tables)
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Preliminary Purchase Price Allocation
The following table sets forth the calculation and allocation of the purchase price to the identifiable net assets acquired with respect to the Acquisition, which was complete as of March 31, 2018.
 
 
Provisional Purchase
Price Allocation
 
Adjustments
 
Purchase
Price Allocation
Total consideration, net of cash acquired
 
$
41,572

 
$

 
$
41,572

 
 
 

 
 
 
 
Recognized amounts of identifiable assets acquired and liabilities assumed:
 
 

 
 
 
 
Receivables
 
$
14,305

 
$

 
$
14,305

Inventories
 
7,645

 
1,603

 
9,248

Prepaid and other current assets
 
400

 

 
400

Property, plant and equipment
 
9,020

 
15,960

 
24,980

Other intangible assets
 

 
5,753

 
5,753

Other long-term assets
 
129

 
15,921

 
16,050

 
 
 

 
 
 
 
Fair value of assets acquired
 
31,499

 
39,237

 
70,736

Current debt
 
(6,420
)
 

 
(6,420
)
Accounts payable
 
(10,748
)
 

 
(10,748
)
Long-term debt
 
(10,189
)
 

 
(10,189
)
Deferred income taxes
 

 
(4,426
)
 
(4,426
)
Other long-term liabilities
 
(154
)
 

 
(154
)
 
 
 

 
 
 
 
Fair value of net assets acquired
 
3,988

 
34,811

 
38,799

Goodwill
 
37,584

 
(34,811
)
 
2,773

 
 
$
41,572

 
$

 
$
41,572

 
 
 
 
 
 
 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The valuation of the intangible assets acquired and the related weighted-average amortization periods are as follows:
 
 
Amount
 
Weighted-Average
Expected Useful Life
(in years)
Intangible assets subject to amortization:
 
 
 
 
Trademarks
 
$
1,767

 
11
Technical know-how
 
1,892

 
11
Total intangible assets subject to amortization
 
3,659

 
 
Trade names, not subject to amortization
 
2,094

 
Indefinite
Total
 
$
5,753

 
 
 
 
 
 
 
Business Acquisition, Pro Forma Information
Net sales and net income generated by the Sovitec legal entities included in the Company’s condensed consolidated statements of operations are as follows:
 
 
Three months ended
September 30,
 
Nine months ended
September 30,
 
 
2018
 
2017
 
2018
 
2017
Net sales
 
$
16,455

 
$
13,490

 
$
46,702

 
$
17,194

Net income
 
386

 
644

 
1,200

 
1,148

 
Unaudited
 
Nine months ended September 30, 2017
Pro forma sales
$
1,130,454

Pro forma net loss
(6,865
)
Pro forma net loss attributable to PQ Group Holdings Inc.
(7,272
)
Pro forma basic and diluted net loss per share
$
(0.07
)