Company: UFPT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001171843-25-003049
Chunk: 78

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 78
---
 assumed based on management’s preliminary estimates of fair value (in thousands):

			Purchase Price Allocation

			Cash

			$
			3,000

			Accounts receivable

			17,138

			Inventory

			9,229

			Other current assets

			210

			Property, plant, and equipment

			1,149

			Customer lists

			46,667

			Intellectual property

			8,245

			Non-compete agreement

			661

			Lease right of use assets

			2,129

			Goodwill

			35,628

			Total assets acquired

			124,056

			Accounts payable

			(1,103
			)

			Accrued expenses

			(7,092
			)

			Lease liabilities

			(2,129
			)

			Total liabilities assumed

			(10,324
			)

			Total assets acquired, net of liabilities assumed

			113,732

			Less: cash acquired

			(3,000
			)

			Purchase price, net of cash acquired

			$
			110,732

Acquisition costs associated with the transaction were approximately $600 thousand charged to expense during the twelve months ended December 31, 2024. These costs were primarily for legal, due diligence, and valuation services, and are reflected on the face of the consolidated statement of comprehensive income.

100% of the goodwill related to the AJR acquisition is expected to be deductible for tax purposes. The goodwill is attributable to the workforce of AJR and the significant synergies expected to arise after the acquisition.

Welch Fluorocarbon

On July 15, 2024, the Company purchased 100% of the outstanding shares of common stock of Welch Fluorocarbon, Inc., (“Welch”) pursuant to a stock purchase agreement and related agreements, for an aggregate purchase price of $34.6 million in cash, plus up to an additional $6.0 million based upon the achievement of certain EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) targets of Welch for each of the 12-month periods ended December 31, 2024, 2025, and 2026. The contingent consideration has a fair value of approximately $800 thousand as of