Company: UFPT
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050425
Chunk: 18

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 costs associated with the transaction of approximately $3 thousand and $189 thousand were charged to expense in the three and nine months ended September 30, 2025, respectively. These costs were primarily for legal services, which are included within “Acquisition costs” on the face of the Condensed Consolidated Statements of Comprehensive Income.None of the goodwill related to the TPI acquisition is expected to be deductible for tax purposes. Goodwill is primarily attributable to the workforce of TPI and the synergies that have been and are expected to further be realized post-acquisition.Universal Plastics & Engineering CompanyOn July 2, 2025, the Company purchased 100% of the outstanding membership interests of Universal Plastics & Engineering Company, Inc. (“UNIPEC”) pursuant to a Securities Purchase Agreement, for an aggregate purchase price of $7.5 million in cash. The purchase price was subject to adjustment based upon UNIPEC’s estimated working capital at closing. Subsequent purchase accounting opening balance sheet adjustments resulted in an increase to the purchase price of approximately $100 thousand. A portion of the purchase price is being held in escrow to indemnify the Company against certain claims, losses, and liabilities. The Securities Purchase Agreement contains representations, warranties, and covenants customary for transactions of this type. As part of the Securities Purchase Agreement, the Sellers as well as certain restricted parties have agreed not to compete with the Company for a period of seven years.UNIPEC, headquartered in Rockville, Maryland, develops and manufactures precision thermoformed and heat-sealed polymer components used primarily for shielding batteries in Class III implantable medical devices.

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The following table summarizes the allocation of the total purchase price of approximately $7.6 million, net of cash acquired, to the acquisition date fair value of the assets acquired and liabilities assumed based on management’s  preliminary estimates of fair value (in thousands):Purchase Price AllocationCash$194 Accounts Receivable676 Inventories284 PP&E432 Goodwill3,163 Intangible assets3,175 Total assets acquired7,924 Accounts payable(4)Accrued expenses(106)Total liabilities assumed(110)Total assets acquired, net of liabilities assumed7,814 Less: cash acquired(194)Purchase price, net of cash acquired$7,620 Acquisition costs associated with the transaction of approximately $12 thousand and $87 thousand were charged to expense in the three and nine months ended September 30, 2025, respectively. These costs