Company: GGG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000042888-25-000014
Chunk: 30

Company: GRACO INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 8
Chunk 30
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ization 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 Months Ended20252024Net sales$528,284 $525,019 Net earnings125,125 123,057 Earnings per shareBasic$0.74 $0.73 Diluted$0.73 $0.71 Unaudited pro forma information has been provided for comparative purposes only and the information does not necessarily reflect what the combined company's results of operations would have been had the acquisition occurred at the beginning of 2023. It also may not be useful in predicting the future results of operations of the combined company. The Company completed another acquisition in 2024 that was not material to the consolidated financial statements.

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Item 2. GRACO INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview