Annual report pursuant to Section 13 and 15(d)

ACQUISITION OF TRECORA CHEMICAL, INC. (formerly SSI Chusei, Inc.) (Tables)

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ACQUISITION OF TRECORA CHEMICAL, INC. (formerly SSI Chusei, Inc.) (Tables)
12 Months Ended
Dec. 31, 2014
ACQUISITION OF TRECORA CHEMICAL, INC. (formerly SSI Chusei, Inc.) [Abstract]  
Schedule of Consideration Paid
The following table summarizes the consideration paid for TC (in thousands):

Cash paid at closing
  $ 2,902  
Cash paid for working capital adjustment
    1,916  
Debt
    70,000  
Total purchase consideration
  $ 74,818  
Schedule of Allocation of Purchase Price
The allocation of the aggregate purchase price is as follows (in thousands):

Purchase Price
        $ 74,818  
               
Cash
  $ 107          
Trade receivables
    2,821          
Inventories
    3,339          
Prepaid expenses and other assets
    743          
Plant, pipeline and equipment
    23,973          
Other intangible assets
    26,706          
Accounts payable
    (1,074 )        
Accrued liabilities
    (1,121 )        
Other liabilities
    (1,759 )        
Long-term debt, net of current portion
    (667 )     53,068  
Goodwill
          $ 21,750  
Schedule of Indefinite Intangible Assets
The components of the other intangible assets listed in the table above, based upon a third party appraisal, were as follows (in thousands):

Identifiable Intangible Asset
 
Value
   
Life (years)
 
Customer Relationships
  $ 16,852       15  
Non-compete Agreements
    94       5  
Licenses and Permits
    1,471    
various
 
Trade Name
    2,158    
indefinite
 
Developed Technology
    6,131       10  
Total
  $ 26,706          
Weighted average amortization period
            12.5  
Unaudited Pro Forma Financial Information
The following unaudited pro forma financial information reflects the consolidated results of operation of the Company as if the Acquisition had taken place on January 1, 2013 (in thousands):
 
   
Years Ended December 31,
 
   
2014
   
2013
 
Sales
  $ 308,966     $ 259,348  
Net Income
  $ 16,623     $ 20,223