Note 29

Acquisitions of companies

Acquisitions completed as of the 2019/2020 financial year are distributed among the Group’s business areas as follows:

Acquisitions (disposals) Country Closing Net sales,
Number of employees* Business Area
Omni Ray AG Switzerland April, 2019 330 65 Automation
Thurne Teknik AB Sweden April, 2019 100 19 Industrial Process
AB N.O. Rönne Sweden April, 2019 8 4 Industrial Process
Best Seating Systems Walter Tausch GmbH Austria May, 2019 23 5 Power Solutions
Thiim A/S Denmark June, 2019 70 15 Automation
Profelec Oy Finland July, 2019 6 2 Energy
BKC Products Ltd. GreatBritain August, 2019 12 5 Industrial Process
Promector Oy Finland August, 2019 24 20 Automation
Wireco-NB Oy Finland February, 2020 23 6 Energy
Caligo Industria Oy Finland February, 2020 70 9 Industrial Process
DMC Digital Motor Control GmbH Germany March, 2020 30 10 Power Solutions
Q-tronic B.V. Netherlands March, 2020 45 10 Power Solutions
Elkome Group Oy Finland April, 2020 85 38 Automation
Peter Andersson AB Sweden April, 2020 30 9 Energy
Valutec Group AB Sweden April, 2020 350 45 Industrial Process
Fluidcontrol Oy Finland September, 2020 41 20 Components
Kaptas Oy Finland September, 2020 41 27 Automation
Elsystem i Perstorp AB Sweden September, 2020 40 18 Automation
Martin Bruusgaard AS Norway September, 2020 108 30 Industrial Process
Satco Komponent AB Sweden October, 2020 18 2 Components
Skyltar & Märken Gruppen AB Sweden October, 2020 60 23 Energy
OF-Beteiligungs AG Switzerland December, 2020 170 35 Power Solutions
Powernor AS Norway January, 2021 35 6 Power Solutions
Synective Labs AB Sweden January, 2021 30 27 Automation
Impact Air Systems Ltd. och Impact Technical Services Ltd. GreatBritain January, 2021 95 33 Industrial Process
Fairfield Trading Company Ltd. GreatBritain March, 2021 37 8 Power Solutions
Hydro-Matieral Oy Finland April, 2021 52 5 Components
ESi Controls Ltd. GreatBritain April, 2021 93 15 Power Solutions
IETV Elektroteknik AB Sweden May, 2021 80 38 Energy
AVT Industriteknik AB Sweden May, 2021 70 42 Automation
* Refers to assessed condition at the time of acquisition and disposal, respectively, on a full-year basis.

The value of assets and liabilities included in acquisitions from the 2019/2020 financial year have been determined conclusively. There has been no change in the acquired values. According to the adopted acquisition analyses, the assets and liabilities included in the acquisitions for the year were as follows:

Carrying amount at acquisition date Adjustment to fair value Fair value Carrying amount at acquisition date Adjustment to fair value Fair value
Intangible non-current assets 26 778 804 2 214 216
Other non-current assets 35 35 13 13
Inventories 138 138 82 82
Other current assets 444 444 175 175
Deferred tax liability/tax asset -5 -156 -161 0 -36 -36
Other liabilities -236 -31 -267 -116 -52 -168
Acquired net assets 402 591 993 156 126 282
Goodwill 773 211
Non-controlling interests 1) -163 -3
Consideration 2) 1,603 490
Less: cash and cash equivalents in acquired businesses -285 -65
Less: consideration not yet paid -199 -73
Effect on the Group’s cash and cash equivalents 1,119 352
1) Non-controlling interests has been measured at fair value, which entails that goodwill is also reported for non-controlling interests.
2) The consideration is stated excluding acquisition expenses.

The combined consideration for the year’s acquisitions was SEK 1,603 million, of which SEK 1,577 million was, in accordance with adopted ac-quisition analyses, allocated to goodwill and other intangible assets. Had the acquisitions been completed on 1 April 2020, their impact would have been an estimated SEK 1,080 million on consolidated net sales, about SEK 100 million on operating profit and about SEK 80 million on profit after tax.

Addtech uses an acquisition structure with a base purchase price and contingent consideration. The outcome of contingent considerations is dependent on future results achieved in the companies and has a set maximum level. Of contingent considerations for acquisitions during the financial year that are yet to be paid, the discounted value amounts to SEK 205 million. The contingent considerations fall due within three years and the outcome may not exceed SEK 263 million.

For acquisitions that resulted in ownership transfer during the financial year, transaction costs totalled SEK 12 million (7) and are recognised in selling expenses.

Revaluations of contingent considerations had a net negative impact of SEK 9 million (52) on the financial year. The impact on profits is recognised in other operating income and other operating expenses, respectively. No material changes in acquisition analyses were made in the financial year with regard to acquisitions carried out in the year or in previous years.

Consolidated goodwill at the time of the acquisition, regarding the expected future sales trend and profitability, is the amount by which the acquisition value exceeds the fair value of net assets acquired. Goodwill is motivated by the anticipated future sales trend and profitability, as well as the personnel included in the acquired companies. As of 31 March 2021 non-taxable goodwill amounted to SEK 2,727 million, to be compa-red with SEK 1,997 million as of 31 March 2020. The change is attribu-table to acquisitions and exchange differences. Consolidated goodwill is assessed annually for impairment, and no needs for impairment have been identified.

The values allocated to intangible non-current assets, such as supplier relationships, customer relationships, technology and trade marks, were assessed at the discounted value of future cash flows. The amortisa-tion period is determined by estimating the annual decrease in sales attributable to each asset. Supplier relationships, customer relationships and technology are generally amortised over a period of ten years. Trademarks are not amortised but are tested annually in accordance with IAS 36. Annual calculated amortisation regarding intangible non-current as sets for the year’s acquisitions amounts to about SEK 80 million.

This website uses cookies

This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy.