Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 36

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 8
Chunk 36
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 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 June 27, 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 March 28, 2025.The total purchase consideration consisted of the following (in thousands):Cash paid$276,188 Contingent consideration14,498 Total purchase consideration$290,686 Preliminary purchase consideration was allocated to assets acquired and liabilities assumed based on estimated fair values as follows (in thousands):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 Goodwill127,252 Current liabilities(52,968)Deferred income taxes, net(33,474)Other non-current liabilities(7,490)Total net assets acquired$290,686 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 

14

The following unaudited pro forma information provides the results of operations for the periods ended June 27, 2025 and June 28, 2024, as if the acquisition had been completed at the beginning of fiscal year 2023 (in thousands, except per share amounts):  Three Months EndedSix Months EndedJune 27,2025June 28,2024June