Helios Technologies Quarterly report pursuant to Section 13 or 15(d)

Business Acquisition (Tables)

3 Months Ended

Apr. 01, 2017

The fair value of total purchase consideration consisted of the following:

Cash	$	201,020
Fair value of contingent consideration		35,077
Post closing adjustment for working capital		500
Total purchase consideration		236,597
Less: cash acquired		(964	)
Total purchase consideration, net of cash acquired	$	235,633

The preliminary allocation of the total purchase price, net of cash acquired, is as follows:

Accounts receivable	$	9,502
Inventories		16,979
Other current assets		176
Property, plant and equipment		10,546
Goodwill		99,167
Intangible assets		108,070
Other assets		8
Total assets acquired		244,448
Accounts payable		(3,260	)
Accrued expenses and other liabilities		(3,745	)
Deferred income taxes		(1,810	)
Total liabilities assumed		(8,815	)
Fair value of net assets acquired	$	235,633

The preliminary fair value of identified intangible assets and their respective useful lives are as follows:

	Fair Value		Weighted- Average Amortization Periods (Yrs)
Brands	$	30,000		20
Non-compete Agreements		950		5
Technology		17,500		9
Supply Agreement		21,000		10
Sales Order Backlog		620		1
Customer Relationships		38,000		20
Identified intangible assets	$	108,070		16

Consequently, actual results will differ from the unaudited pro forma information presented below:

	Three months ended
	April 2, 2016
Net sales	$	70,855
Operating income		13,765
Net income		9,105
Basic and diluted net income per common share		0.34