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Acquisitions
 6 Months Ended
Jul. 04, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
The Company's acquisitions are accounted for using the acquisition method of accounting. The results of the acquired businesses are included in its condensed consolidated financial statements from the date of acquisition. Historically, acquisitions have been made at prices above the fair value of identifiable net assets, resulting in the recognition of goodwill. Acquisition costs were $604,000 in the second quarter of 2026 and $1,278,000 in the six months ended July 4, 2026, and are included in selling, general and administrative (SG&A) expenses in the accompanying condensed consolidated statement of income.

2026
On January 29, 2026, the Company entered into a definitive agreement to acquire the shares of voestalpine BÖHLER Profil GmbH & Co KG and voestalpine BÖHLER Profil VerwaltungsGmbH. The acquisition was completed on April 30, 2026 for $170,132,000, net of cash acquired and the noncash settlement of a pre-existing balance with the acquired entity, and remains subject to a post-closing purchase price adjustment. The acquisition was funded through borrowings under the Company's revolving credit facility. Upon closing, the acquired entities were renamed Kadant Profil GmbH & Co KG and Kadant Profil Verwaltungs GmbH (collectively, Kadant Profil). Kadant Profil is a manufacturer of customized rolled profiles and industrial knife solutions for demanding industrial applications and is part of the Company's Industrial Processing segment. The Company expects the acquisition to generate synergies by expanding product sales into new markets through its global sales network and relationships, broadening its product portfolio, strengthening its position in the markets it serves, leveraging the acquired workforce, and achieving internal production efficiencies. Goodwill recognized in the Kadant Profil acquisition was $111,140,000 and separately identifiable intangible assets acquired were $22,219,000, both of which are expected to be fully deductible for income tax purposes over 15 years.
The following table summarizes the preliminary estimated fair values of assets acquired and liabilities assumed in connection with the acquisition of Kadant Profil.
(In thousands)Total
Cash and Cash Equivalents
$2,917 
Accounts Receivable
3,867 
Inventories
14,401 
Property, Plant and Equipment
31,481 
Other Assets
305 
Definite-Lived Intangible Assets
Customer relationships 6,900 
Product technology 15,319 
Goodwill
111,140 
Total assets acquired
$186,330 
Accounts Payable
$3,209 
Other Current Liabilities
6,104 
Long-Term Obligations
3,249 
Total liabilities assumed
12,562 
Net assets acquired
$173,768 
Purchase Price:
Cash consideration$176,964 
Noncash settlement of pre-existing balance with the acquired entity(3,915)
Estimated post-closing adjustment719 
$173,768 
The weighted-average amortization period for the definite-lived intangible assets related to the Kadant Profil acquisition is 17 years, including weighted-average periods of 24 years for customer relationships and 14 years for product technology.
The preliminary purchase price allocation for the Kadant Profil acquisition remains subject to revision as the Company continues to obtain information regarding the valuation of certain acquired assets and assumed liabilities. The Company expects the remaining purchase price adjustments to primarily relate to the valuation of intangible assets and inventory.

2025
During the six months ended July 4, 2026, the Company recorded measurement-period adjustments related to its acquisitions of Babbini S.p.A. and G.P.S. Engineering S.r.l. (collectively, Babbini) on July 9, 2025, and Clyde Industries Holdings, Inc. and its subsidiaries (collectively, Clyde Industries) on October 7, 2025. The adjustments primarily related to inventory and deferred income taxes and were not material to the Company's condensed consolidated financial statements as of and for the three and six months ended July 4, 2026.
The preliminary purchase price allocation for the Clyde Industries acquisition remains subject to revision as the Company continues to obtain information regarding the valuation of certain acquired assets and assumed liabilities. The Company expects the remaining purchase price adjustments will primarily relate to the valuation of inventory and deferred income taxes.

2024
On August 21, 2024, the Company acquired a technology company, which is included in its Material Handling segment. The total purchase price was approximately $11,785,000, which included cash paid of $8,843,000, net of cash acquired, a post-closing holdback payment of $1,157,000, which was paid during the first quarter of 2026, and contingent consideration with a fair value of $1,785,000 as of the acquisition date. The contingent consideration is payable upon the achievement of certain revenue performance targets earned between June 30, 2025 and June 30, 2027. The maximum future value of the contingent consideration subject to payment is approximately $12,140,000, calculated using the foreign currency spot rate at July 4, 2026. The fair value of the contingent consideration is dependent on the following assumptions: the
probability of successful achievement of certain revenue targets, forecasted revenue, revenue volatility, and discount rate. See Note 8, Fair Value Measurements and Fair Value of Financial Instruments, for additional information related to the fair value of the contingent consideration assumed in the acquisition.