Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
25. Business combination
Acquisition of Rexam plc’s Glass Division
On 21 June 2007 Ardagh completed the acquisition of Rexam plc’s glass division. The acquired
business operates a number of glass manufacturing plants in Germany, Poland, Holland, Denmark and
Sweden. The acquired business contributed revenues of A367.1 million and net profit of A28.1 million to
the Group for the period from 21 June 2007 to 31 December 2007. If the acquisition had occurred on
1 January 2007 Group revenue would have been A1,340.6 million and operating profit would have been
A94.6 million. These amounts have been calculated using the Group accounting policies as if they had
applied from 1 January 2007 together with the consequential tax effects.
The transaction has been accounted for in accordance with IFRS 3 Business Combinations.
A summary of the net assets acquired and related goodwill is set out below:
Fair value
Book value adjustments Fair value
E’000 E’000 E’000
Property, plant and equipment ............................ 380,971 202,596 583,567
Intangible assets ...................................... 2,982 13,779 16,761
Inventories .......................................... 126,912 13,766 140,678
Trade and other receivables .............................. 191,090 (3,084) 188,006
Cash ............................................... 16,648 — 16,648
Total assets acquired ................................... 718,603 227,057 945,660
Trade and other payables ................................ (390,215) — (390,215)
Deferred income ...................................... (4,524) — (4,524)
Provisions for liabilities and charges ........................ (79,292) (56,644) (135,936)
Net assets ........................................... 244,572 170,413 414,985
Consideration—cash ................................... (412,965)
Acquisition expenses ................................... (11,770)
Goodwill ............................................ (9,750)
Purchase consideration settled in cash ....................... 412,965
Acquisition expenses ................................... 11,770
Loans repaid to Rexam plc .............................. 206,060
Cash acquired with subsidiaries ........................... (16,648)
Cash outflow on acquisition .............................. 614,147
The fair value adjustments consist of:
• An adjustment of A202,596,000 to recognise the fair value of land and buildings
• An adjustment of A13,779,000 to recognise an intangible asset
• An adjustment of A13,766,000 to recognise the fair value of inventory
• An adjustment of A4,455,000 to recognise the fair value of pensions
• An adjustment of A1,136,000 to recognise a deferred tax asset
• An adjustment of A64,425,000 to recognise a deferred tax liability
• An adjustment of A3,326,000 to recognise the fair value of provisions
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