Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 756

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 4
Chunk 756
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 expected to be settled within 24 months from the date of acquisition.
    
   The purchase price was allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on a valuation of their fair values on the closing date. Goodwill recorded from this transaction is attributable to Sanyu's technical and applications expertise, which is highly complementary to the Company's existing business.
    
   Identifiable intangible assets of $2.9 million consist primarily of $0.7 million for indefinite lived tradenames and $2.2 million of customer relationships to be amortized over 12 years. The goodwill of $9.1million created by the transaction is not deductible for income tax purposes. The accounting for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets, in determining the assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management's best estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. 
    
   The components of the fair value of the Sanyu acquisition, including the final allocation of the purchase price are as follows (in thousands): 

       Final Allocation as of March 31, 2025 
 Total purchase consideration:    
 Cash payments  $22,178
 Holdbacks   2,464
 Less cash acquired   (3,711)
 Total  $20,931

 Identifiable assets acquired and liabilities assumed:    
 Other acquired assets  $7,991
 Inventories   5,704
 Property, plant, and equipment   4,537
 Identifiable intangible assets   2,900
 Goodwill   9,100
 Liabilities assumed   (9,301)
 Total  $20,931

       41

   Acquisition Related Expenses
    
   Acquisition related expenses include costs related to acquired businesses and other pending acquisitions.  These costs consist of (i) deferred compensation arrangements and (ii) acquisition related professional service fees and expenses, including financial advisory, legal, accounting, and other outside services incurred in connection with acquisition activities, and regulatory matters related to acquired entities.  These costs do not include purchase accounting expenses, which the Company defines as acquired backlog and the step-up of inventory to fair value,