Quarterly report pursuant to Section 13 or 15(d)

Business Combinations

v3.23.2
Business Combinations
9 Months Ended
Jul. 01, 2023
Business Combinations [Abstract]  
Business Combinations

Note 3—Business Combinations

Our condensed consolidated financial statements include the results of operations of these acquisitions from the date of acquisition. The total purchase consideration was allocated to the tangible and intangible assets acquired and the liabilities assumed at their estimated fair values as of each acquisition date, with the excess recorded to goodwill. The goodwill resulting from these acquisitions is expected to be deductible for income tax purposes. During the measurement periods, which will not exceed one year from each closing, we will continue to obtain information to assist us in finalizing the acquisition date fair values. Any qualifying changes to our preliminary estimates will be recorded as adjustments to the respective assets and liabilities, with any residual amounts allocated to goodwill.

Fiscal 2023 Acquisitions

During the nine months ended July 1, 2023, we acquired five businesses for an aggregate purchase price of $15.5 million, net of cash acquired. These acquisitions expanded our pool and spa footprint and added 12 new locations across Arizona, California, Florida, and Louisiana. The purchase accounting for these acquisitions has not yet been completed.

 

 

 

Total

 

Total purchase consideration, net of cash acquired

 

$

15,549

 

Fair value of assets acquired and liabilities assumed:

 

 

 

Inventories

 

 

4,518

 

Finite-lived intangible assets

 

 

2,700

 

Other assets and liabilities, net

 

 

152

 

Total assets acquired, net of liabilities assumed

 

 

7,370

 

Goodwill

 

$

8,179

 

Fiscal 2022 Acquisitions

In fiscal 2022, we acquired six businesses for an aggregate purchase price of $107.7 million, inclusive of contingent consideration of up to $4.0 million if certain performance metrics are achieved within one to three years of the respective closing dates. Contingent considerations are remeasured to fair value at each reporting period until the contingency is resolved. There were no material reductions in the fair value of certain prior year contingent considerations. These acquisitions expanded our pool and spa footprint and added 27 new locations as well as expanded our manufacturing capabilities. The following table sets forth the preliminary purchase price allocation of these acquisitions, net of immaterial measurement period adjustments, in the aggregate (in thousands). The purchase accounting for five of the six acquisitions is complete.

 

 

 

Total

 

Total purchase consideration, net of cash acquired

 

$

107,663

 

Fair value of assets acquired and liabilities assumed:

 

 

 

Inventories

 

 

20,050

 

Finite-lived intangible assets

 

 

15,200

 

Other assets and liabilities, net

 

 

3,086

 

Total assets acquired, net of liabilities assumed

 

 

38,336

 

Goodwill

 

$

69,327