POWL » Topics » Switchgear & Instrumentation Limited (S&I)

This excerpt taken from the POWL 10-K filed Dec 7, 2007.
Switchgear & Instrumentation Limited (“S&I”)
On July 4, 2005, we acquired selected assets and assumed certain operating liabilities and contracts of S&I. S&I’s primary manufacturing facility is located in the United Kingdom. This acquisition is part of our overall strategy to increase our international presence. S&I affords us the opportunity to serve our customers with products covering a wider range of electrical standards and opens new geographic markets previously closed due to a lack of product portfolio. The fit, culture and market position of Powell and S&I compare favorably as both have similar reputations in engineered-to-order solutions. S&I is a supplier of medium- and low-voltage switchgear, intelligent motor control systems and power distribution solutions to a wide range of process industries, with a focus on oil and gas, petrochemical and other process-related industries. Total consideration paid for S&I was approximately $18.0 million (excluding expenses of approximately $1.2 million). Approximately $10.3 million was funded from


Table of Contents

existing cash and investments, with the balance provided from the UK Term Loan (as defined in Note H herein). The results of operations of S&I are included in the Company’s consolidated financial statements beginning July 4, 2005. The consolidated balance sheet of Powell includes an allocation of the purchase price to the assets acquired and liabilities assumed based on estimates of fair value.
The purchase price allocation was as follows (in thousands):
    Amount     Life
Accounts receivable
  $ 4,730     N/A
Costs and estimated earnings in excess of billings
    4,492     N/A
    3,745     N/A
Prepaid expenses and other current assets
    379     N/A
Property, plant and equipment
    9,542     3 to 25 years
Unpatented technology
    2,175     7 years
    1,025     10 years
    646     6 months
Accounts payable
    (5,793 )   N/A
Billings in excess of costs and estimated earnings
    (1,440 )   N/A
Other accrued expenses
    (334 )   N/A
Total purchase price
  $ 19,167      
The amounts assigned to property, plant and equipment were based on management’s estimate of the property and plant, as well as the more significant pieces of machinery and equipment, using various factors including comparisons to similar assets and market valuations. The amounts assigned to intangible assets were estimated by management based on comparisons of replacement costs, industry data and the anticipated future benefits of the assets.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki