15. SUBSEQUENT EVENTS

Payment on contingent consideration liability

During July 2018, in accordance with the contingent consideration arrangement for the acquisition of Enovation Controls, the Company made the second cash payment to Enovation Controls’ former owners totaling $17,342.

Acquisition of Custom Fluidpower Pty Ltd

On August 1, 2018, the Company acquired all of the outstanding equity interests of Custom Fluidpower Pty Ltd (“Custom Fluidpower”), an Australian proprietary limited liability company. The acquisition was completed pursuant to a Share Sale Agreement among the Company and the shareholders of Custom Fluidpower.

Consideration paid at closing totaled 35,000 Australian dollars, approximately $25,906, and included 333,065 shares of the Company’s common stock and cash of approximately 12,574 Australian dollars, approximately $9,307. The cash consideration was funded with borrowings on the Company’s credit facility.

Custom Fluidpower is a leading provider of hydraulic, pneumatic, electronic and instrumentation solutions. The company supplies hydraulic, pneumatic, filtration and lubrication products and offer complete system design, installation and commissioning, and service and repairs, to a broad range of industries including agriculture, aerospace, exploration, industrial, marine, mobile, mining and material handling.  Headquartered in Newcastle, NSW, Australia, Custom Fluidpower has operational branches co-located with its headquarters as well as throughout Australia including Brisbane, QLD; Gladstone, QLD; Mackay, QLD; Perth, WA; Port Hedland, WA; and Singleton, NSW. Additionally, the company has a sales office in Melbourne, VIC.

The acquisition of Custom Fluidpower is in alignment with Helios’ Vision 2025 goals, advancing the Company as a global technology leader in the industrial goods sector while maintaining superior profitability and financial strength. Custom Fluidpower further diversifies the Company’s hydraulics product and service portfolio and broadens the Company’s global footprint.

The Company determined the acquisition of Custom Fluidpower was not a significant acquisition under Rule 3-05 of Regulation S-X.