What was the total cash consideration, net of cash acquired, for Aplus's acquisition of the transmix processing and terminal facility in Huntington, Indiana from Gladieux Capital Partners, LLC?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
-----------------------------------------------|-------------------| | Property and equipment | 65 | | Goodwill | 11 | | Current liabilities | (15) | | Deferred tax liability | (11) | | Net assets | 76 | | Cash acquired | (9) | | Total cash consideration, net of cash acquired | $ 67 |
On April 1, 2022, we completed the acquisition of a transmix processing and terminal facility in Huntington, Indiana from Gladieux Capital Partners, LLC for $252 million, net of cash acquired. Management, with the assistance of an independent valuation firm, determined the fair value of assets and liabilities at the date of the acquisition. Goodwill acquired in connection with the acquisition is deductible for tax purposes.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the company acquired a transmix processing and terminal facility in Huntington, Indiana from Gladieux Capital Partners, LLC on April 1, 2022. The total cash consideration, net of cash acquired, for this acquisition was $252 million. This figure represents the final amount paid after accounting for any cash that Aplus received as part of the acquisition.
The FDD also provides a breakdown of how the purchase price was allocated among the assets acquired and liabilities assumed. This allocation includes figures for inventories, other current assets, property and equipment, goodwill, intangible assets, and current liabilities. Understanding these allocations can be important for assessing the long-term value and financial impact of the acquisition on Aplus's overall financial position.
For a prospective Aplus franchisee, this information offers insight into the company's acquisition strategy and how it manages its assets and liabilities. The acquisition of the Huntington, Indiana facility demonstrates Aplus's willingness to invest in infrastructure and expand its operations through strategic acquisitions. Reviewing such transactions can help a franchisee understand the financial decisions and growth strategies employed by Aplus's management.