Quarterly report pursuant to Section 13 or 15(d)

Acquisitions

v3.10.0.1
Acquisitions
6 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Acquisitions
Acquisitions
THS acquisition
On October 30, 2017, we, through a wholly-owned subsidiary, acquired 100% of the equity interests of CCI Thermal Technologies Inc. and certain related real estate assets for $262,415 CAD (approximately $204,596 USD at the exchange rate as of October 30, 2017) in cash (such purchase price inclusive of final working capital adjustments). Such subsidiary and CCI Thermal Technologies Inc. amalgamated immediately after the closing of the acquisition to form Thermon Heating Systems, Inc. ("THS"), an indirect, wholly-owned subsidiary of the Company. THS is engaged in industrial process heating, focused on the development and production of advanced heating and filtration solutions for industrial and hazardous area applications and is headquartered in Edmonton, Alberta, Canada. THS markets its products through several diverse brands known for high quality, safety and reliability, and serves clients in the energy, petrochemical, electrical distribution, power, transit and industrial end markets globally. We believe we will be able to leverage our existing global sales force to further expand the reach of THS's product offerings. We recognized $85,637 of goodwill in connection with the THS acquisition.    

As of September 30, 2018, the Company has determined there are no adjustments to the amounts below. The following table details the purchase price of the THS acquisition:
Consideration to or on behalf of sellers

$
204,596

Fair value of total consideration transferred
204,596


The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed:
Assets acquired:
 
     Cash
$
1,534

     Accounts receivable
14,351

     Inventories
20,085

     Other current assets
1,181

     Property, plant and equipment
29,464

     Identifiable intangible assets
79,002

     Goodwill
85,637

Total assets
231,254

Liabilities assumed:
 
     Current liabilities
6,832

     Other non-current liabilities
500

     Non-current deferred tax liability
19,326

Total liabilities
26,658

Total consideration
$
204,596




In total, $4,093 of transaction costs were incurred related to the THS acquisition, all of which were incurred prior to the six months ended September 30, 2018. During the six months ended September 30, 2018, we finalized the working capital adjustment related to the THS acquisition, and accordingly, recorded an adjustment to goodwill in the amount of $481 and recorded other minor adjustments to current liabilities.

Our provisional estimate of identifiable intangible assets at September 30, 2018 that were related to the THS acquisition, inclusive of currency translation adjustments for the period, consisted of the following:
 
Amortization period
 
Gross Carrying Amount at September 30, 2018
 
Accumulated Amortization
 
Net Carrying Amount at September 30, 2018
 
Gross Carrying Amount at March 31, 2018
 
Accumulated Amortization
 
Net Carrying Amount at March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Products
10 Years
 
$
64,356

 
$
5,899

 
$
58,457

 
$
64,611

 
$
2,692

 
$
61,919

Customer relationships
17 Years
 
11,111

 
599

 
10,512

 
11,155

 
273

 
10,882

Backlog
1 Year
 
3,217

 
2,949

 
268

 
3,230

 
1,346

 
1,884

Total
 
 
$
78,684

 
$
9,447

 
$
69,237

 
$
78,996

 
$
4,311

 
$
74,685



The weighted average useful life of acquired finite lived intangible assets related to THS acquisition is 10.6 years.