Acquisitions and Divestitures |
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| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions and Divestitures | NOTE F — ACQUISITIONS AND DIVESTITURES During the fiscal year ended May 31, 2026, we completed a total of six acquisitions across our three reportable segments. Most notably, on June 17, 2025, we announced the acquisition of Ready Seal Inc. ("Ready Seal"), a Texas-based manufacturer of premium exterior wood stains, which is included in our Consumer segment. Furthermore, in the fourth quarter of fiscal 2026, we acquired Kalzip GmbH ("Kalzip"), a global leader in the design and production of metal-based roofs and facades for building envelopes, which is included primarily in our CPG reportable segment. During the fiscal year ended May 31, 2025, we completed a total of six acquisitions across our three reportable segments. Most notably, on April 30, 2025, we acquired 100% of the stock of Clean Topco Limited, including its wholly owned subsidiaries comprising the Star Brands Group, which is the parent company of The Pink Stuff. The Star Brands Group is included in our Consumer reportable segment and is a globally recognized leader in household cleaning products best known for its iconic cleaning paste, vibrant branding and signature scent. The total purchase price for this acquisition was $487.4 million. In addition to cash consideration, the seller may be eligible to receive a future contingent cash receipt of up to an additional $106.9 million upon achievement of certain financial goals. Furthermore, in the second quarter of fiscal 2025, we acquired TMP Convert SAS which is a leading manufacturer of outdoor design and landscape products and is included in our PCG reportable segment. We incurred $12.1 million and $11.3 million of acquisition-related costs during the years ended May 31, 2026 and 2025, respectively, which are recorded in SG&A on the Consolidated Statement of Income. The purchase price for each acquisition has been allocated to the estimated fair values of the assets acquired and liabilities assumed as of the date of acquisition. We have finalized the purchase price allocation for our fiscal 2025 acquisitions. At May 31, 2026, the value of total assets acquired and liabilities assumed are substantially complete. The areas that remain open primarily relate to working capital adjustments and the fair value of deferred income taxes. Acquisitions are aggregated by year of purchase in the following table:
(1) Figure includes cash acquired of $17.4 million. (2) Figure includes cash acquired of $43.8 million.
The fiscal year 2025 acquisitions above include goodwill of $229.8 million, indefinite-lived trade names of $89.8 million, and other intangible assets of $179.6 million for the Star Brands Group of which $35.7 million is expected to be deductible for tax purposes. Our Consolidated Financial Statements reflect the results of operations of acquired businesses as of their respective dates of acquisition. Pro-forma results of operations for the years ended May 31, 2026 and 2025 were not materially different from reported results and, consequently, are not presented. |
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