Quarterly report pursuant to Section 13 or 15(d)

Subsequent Event

Subsequent Event
9 Months Ended
Oct. 01, 2016
Subsequent Events [Abstract]  
Subsequent Event



On November 7, 2016, the Company entered into a Unit Purchase Agreement with Murphy Group, Inc., an Oklahoma corporation, and EControls Group, Inc., a Texas corporation, which together own a majority of the outstanding membership units of Enovation Controls, LLC, an Oklahoma-based company, to acquire all of the outstanding membership units of Enovation Controls, LLC and retain its Power Controls (PC) and Vehicle Technologies (VT) lines of business only. The acquisition has a potential value of $250 million, including initial consideration of $200 million and additional earn-out potential of $50 million. We expect to utilize a combination of existing cash and cash equivalents and proceeds from our existing revolving line of credit to effect this transaction. Enovation’s complementary products expand Sun’s complete system solution portfolio while developing product and end market diversification. The acquisition is subject to customary closing conditions and is expected to close in the fourth quarter of 2016. It is not currently practicable, based on the pending status of the acquisition, for us to disclose pro forma results of operations or financial position.