Company: GGG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000042888-25-000011
Chunk: 98

Company: GRACO INC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 98
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 €15.0 million for both periods. The fair value of the earn out payments was initially valued using a probability-weighted expected return approach of future payments to be made to previous owners based on future revenues.The total purchase consideration consisted of the following (in thousands):Cash paid$265,301 Acquisition-related consideration payable10,339 Contingent consideration14,607 Total purchase consideration$290,247 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 Inventories26,375 Other current assets17,915 Property, plant and equipment16,619 Other non-current assets5,854 Identifiable intangible assets131,564 Goodwill126,101 Current liabilities(52,544)Deferred income taxes, net(33,166)Other non-current liabilities(7,490)Total net assets acquired$290,247 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):

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Estimated Life (years)Trade name$32,458 IndefiniteCustomer relationship76,493 15Developed technology20,557 10Backlog2,056 0.5Total identifiable intangibles assets$131,564 The fair values of the trade name and developed technology acquired in the acquisition were determined using a relief-from-royalty method, and customer relationships and backlog acquired were determined using an excess earnings method. These methods utilize unobservable inputs that are significant to these fair value measurements and thus classified as Level 3 of the fair value hierarchy described in Note A.The following unaudited pro forma information provides the results of operations for the years ended December 27, 2024 and December 29, 2023, as if the acquisition had been completed at the beginning of fiscal year 2023 (in thousands, except per share amounts):  20242023Net sales$2,218,982 $2,316,030 Net earnings489,109 501,114 Earnings per shareBasic$2.90$2.97Diluted$2.84$2.91The unaudited pro forma information includes the impact of intangible asset amortization of approximately $