4. Acquisitions Matchless Metal Polishing On February 27, 2020, the Company acquired selected assets of Matchless Metal Polishing (Matchless), a North American manufacturer of high-quality polishing buffs, compounds, and chemicals for a preliminary cash purchase price of $5.0 million. The purchase price includes $1.0 million that is contingent upon certain performance conditions. Through the acquisition of Matchless, the Company expanded its product line offerings within North America. The business has been integrated into the Companys industrial segment. The acquisition included the purchase of product lines, customers and selected assets and did not include manufacturing operations, with Matchless production transitioning to existing industrial facilities. The aggregate acquisition-date fair value of the consideration transferred totaled $4.9 million, which consisted of the following: Fair Value of Consideration Transferred Fair Value Cash $ 3,965 Contingent consideration 893 Total $ 4,858 The contingent consideration arrangement requires the Company to make periodic payments to the former owners of the business upon achievement of certain sales levels through March 31, 2024, up to a maximum amount of $1.0 million (undiscounted). The Company determined the acquisition-date fair value of the contingent consideration liability to be $0.9 million by discounting the $1.0 million using a risk adjusted rate over 3.4 years, which is based on the anticipated timeframe for the Company to achieve the necessary sales levels for the maximum earn-out payments. The Company has determined that the inputs used to value the contingent consideration liability falls within Level 3 of the fair value hierarchy as the valuation includes estimates of future sales that are considered unobservable. The acquisition was accounted for as a business combination. The operating results and cash flows of Matchless are included in the Company's condensed consolidated financial statements from February 27, 2020, the date of the acquisition. The Company has recorded a preliminary allocation of the purchase price for the tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values as of the February 27, 2020 acquisition date. The preliminary purchase price allocation was as follows: Preliminary Purchase Price Allocation Inventories-net $ 500 Property, plant, and equipment-net 429 Goodwill 1,435 Other intangible assets-net 2,530 Other current liabilities (36) Total purchase price $ 4,858 The preliminary purchase price resulted in goodwill of $1.4 million in the industrial segment, all of which is deductible for tax purposes. Included within the $1.4 million of goodwill is $0.9 million of goodwill generated from contingent consideration which becomes deductible for tax purposes as the consideration is paid. Goodwill generated from Matchless is primarily attributable to expansion of polishing product line offerings within North America and leveraging current plant capacity to produce Matchless products. The preliminary allocation of the purchase price is based on the preliminary valuations performed to determine the fair value of the net assets as of the acquisition date. The amounts allocated to goodwill and intangible assets are based on preliminary valuations and are subject to adjustments to reflect the final valuations. The preliminary values allocated to other intangible assets - net and the weighted average useful lives was as follows: Gross Carrying Amount Weighted Average Useful Life (years) Customer relationships $ 2,200 9.8 Trademarks 200 1.8 Non-compete agreements 130 4.8 $ 2,530 The Company recognized $0.1 million of acquisition-related transaction costs that were expensed in the three months ended March 27, 2020. These costs are included in the condensed consolidated statements of operations as Selling and administrative expenses. During the three months ended March 27, 2020, $0.6 million of net sales from Matchless were included in the Company's condensed consolidated statements of operations. Pro forma historical results of operations related to the acquisition of Matchless have not been presented as they are not material to the Company's condensed consolidated statements of operations. Schaffner Manufacturing Company, Inc. On April 1, 2019, the Company acquired all of the outstanding shares of Schaffner Manufacturing Company, Inc. (Schaffner). Schaffner is a North American manufacturer of high-quality polishing and finishing products. These products are manufactured and distributed by the industrial segment. Through the acquisition of Schaffner, the Company expanded its polishing product line offerings within North America. Upon finalization of working capital adjustments and other settlement items, the purchase price was $11.0 million, net of $0.2 million of cash acquired, all of which has been paid as of March 27, 2020. The related purchase agreement includes customary representations, warranties and covenants between the named parties. The acquisition was accounted for as a business combination. The operating results and cash flows of Schaffner are included in the Companys condensed consolidated financial statements from April 1, 2019, the date of the acquisition. The Company recognized $0.2 million of acquisition-related transaction costs that were expensed in the three months ended March 29, 2019. These costs are included in the condensed consolidated statements of operations as Selling and administrative expenses. Pro forma historical results of operations related to the acquisition of Schaffner have not been presented as they are not material to the Companys condensed consolidated statements of operations.