Company: GGG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000042888-25-000014
Chunk: 10

Company: GRACO INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 1
Chunk 10
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 made to previous owners of certain acquired businesses based on future revenues. The fair value of variable rate borrowings approximates carrying value. The Company uses significant other observable inputs to estimate fair value (level 2 of the fair value hierarchy) based on the present value of future cash flows and rates that would be available for issuance of debt with similar terms and remaining maturities.

12.     Acquisitions

On November 4, 2024, the Company acquired Corob S.p.A. ("Corob") for €230 million in cash, subject to normal post-closing purchase price adjustments, with up to €30 million in additional contingent consideration. As of March 28, 2025, the purchase price allocation remains preliminary as the Company completes its assessment, principally related to income taxes. Amounts within the tables below are revised related to the finalization of post-close price adjustments as reported from December 27, 2024.The total purchase consideration consisted of the following (in thousands):Cash paid$276,203 Contingent consideration14,498 Total purchase consideration$290,701 Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):

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Cash and cash equivalents$30,899 Accounts receivable28,120 Inventories26,119 Other current assets18,515 Property, plant and equipment16,619 Other non-current assets5,854 Identifiable intangible assets131,240 Goodwill127,267 Current liabilities(52,968)Deferred income taxes, net(33,474)Other non-current liabilities(7,490)Total net assets acquired$290,701 Goodwill recognized from the Corob acquisition primarily reflects an intangible asset that does not qualify for separate recognition. None of the goodwill acquired with Corob is deductible for tax purposes.Identifiable intangible assets and estimated useful life are as follows (in thousands):Estimated Life (years)Trade name$32,458 IndefiniteCustomer relationship76,169 15Developed technology20,557 10Backlog2,056 0.5Total identifiable intangibles assets$131,240 The following unaudited pro forma information provides the results of operations for the periods ended March 28, 2025 and March 29, 2024, as if the acquisition had been completed at the beginning of fiscal year 2023 (in thousands, except per share amounts):  Three