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65
2013 ACQUISITIONS
INFASTECH
On February 27, 2013, the Company acquired a 100% ownership interest in Infastech for a total purchase price of $826.4
million, net of cash acquired. Infastech designs, manufactures and distributes highly-engineered fastening technologies and
applications for a diverse blue-chip customer base in the industrial, electronics, automotive, construction and aerospace end
markets. The acquisition of Infastech added to the Company's strong positioning in specialty engineered fastening, an industry
with solid growth prospects, and further expanded the Company's global footprint with its strong concentration in fast-growing
emerging markets. Infastech is headquartered in Hong Kong and has been consolidated into the Company's Industrial segment.
The Infastech acquisition has been accounted for using the acquisition method of accounting which requires, among other
things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The following
table summarizes the estimated fair values of major assets acquired and liabilities assumed:
(Millions of Dollars)
Cash and cash equivalents .............................................................................................................................................. $ 82.0
Accounts and notes receivable, net................................................................................................................................. 117.3
Inventories, net ............................................................................................................................................................... 86.7
Prepaid expenses and other current assets...................................................................................................................... 5.3
Property, plant and equipment, net................................................................................................................................. 46.0
Trade names.................................................................................................................................................................... 22.0
Customer relationships ................................................................................................................................................... 251.0
Technology ..................................................................................................................................................................... 28.0
Other assets..................................................................................................................................................................... 3.4
Accounts payable............................................................................................................................................................ (99.0)
Accrued expenses ........................................................................................................................................................... (52.6)
Deferred taxes................................................................................................................................................................. (68.6)
Other liabilities ............................................................................................................................................................... (42.8)
Total identifiable net assets............................................................................................................................................. $ 378.7
Goodwill ......................................................................................................................................................................... 529.7
Total consideration transferred....................................................................................................................................... $ 908.4
The weighted average useful lives assigned to the trade names, customer relationships, and technology were 15 years, 12.7
years, and 10 years, respectively.
Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected
cost synergies of the combined business, assembled workforce, and the going concern nature of Infastech.
GQ
On May 28, 2013, the Company purchased a 60% controlling share in Jiangsu Guoqiang Tools Co., Ltd. ("GQ") for a total
purchase price of $48.5 million, net of cash acquired. GQ is a manufacturer and seller of power tools in both domestic and
foreign markets. The acquisition of GQ complements the Company's existing power tools product offerings and further
diversifies the Company's operations and international presence. GQ is headquartered in Qidong, China and has been
consolidated into the Company's Tools & Storage segment. The estimated net liabilities acquired of GQ, including $20.4
million of intangible assets and $3.5 million of cash, totaled approximately $10.8 million and the resulting goodwill was $92.6
million. The total purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair
values. In December 2015, the Company purchased the remaining 40% interest for a total purchase price of $33.5 million.
Four smaller acquisitions were completed during 2013 for a total purchase price of $40.9 million, net of cash acquired, which
have been integrated into each of the Company’s three segments.