Company: KEQU
Filing Date: 2025-07-02
Form Type: 10-K
Source: 0000055529-25-000026
Chunk: 94

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-07-02
Form: 10-K
Item: Item 1A
Chunk 94
---
 the contract liability balance at April 30, 2025 is expected to be recognized as revenue during fiscal year 2026, with the remaining balance primarily related to international operations, which generally have longer delivery and collection cycles.

Note 3—Inventories

Inventories consisted of the following at April 30:(in thousands)20252024Finished goods$5,543 $3,042 Work-in-process3,784 1,931 Materials and components23,522 15,706 Total inventories$32,849 $20,679 

At April 30, 2025 and 2024, the Company's international subsidiaries' inventories were $2,845,000 and $3,239,000, respectively, measured using the lower of cost or net realizable value under the FIFO method and are included in the above tables. 

Note 4—Nu Aire Acquisition

37

On November 1, 2024 (the "Closing Date"), the Company completed the acquisition of Nu Aire, Inc. ("Nu Aire"), a leading manufacturer of equipment for a diverse range of laboratory and pharmacy environments, by acquiring all of the Nu Aire capital stock that was issued and outstanding as of the date of acquisition (the "Transaction"). The Transaction expands the Company's capabilities, allowing the combined organization to better meet the needs of end-users in laboratory furnishings and accelerates the Company's vision of becoming the market leader in the design and manufacturing of laboratory furniture and technical products essential for outfitting laboratories.The Company purchased all the outstanding stock of Nu Aire for $55.0 million, subject to certain adjustments for debt, cash, transaction expenses, and net working capital resulting in aggregate acquisition consideration of $53.0 million as shown in the table below. $23.0 million of the purchase price payable at closing of the Transaction was funded pursuant to subordinated seller notes. The remaining purchase price payable at closing of the Transaction was paid in cash, which cash was funded, in part, through the Revolving Credit Facility (as defined in Note 6, Long-term Debt and Other Credit Arrangements), and Term Loan (as defined in Note 6, Long-term Debt and Other Credit Arrangements), provided to the Company by PNC Bank, National Association ("PNC").The following table summarizes the aggregate acquisition consideration for Nu Aire:($ in thousands)Cash paid to Nu Aire$29,669 Subordinated Promissory Notes due to Nu A