Annual Report 2009 - Husqvarna Group

Notes Husqvarna Annual Report 2009 83
Amounts in SEKm unless otherwise stated.
Total fair value of assets and liabilities for all
acquisitions made in 2009
SEKm
Carrying
amount
Fair value
adjustment
Fair value
acquisition
balance
Goodwill 0 0
Other intangible assets 0 0
Property, plant and
equipment 26 11 37
Other non-current assets 0 0
Inventories 48 48
Trade receivables 0 0
Trade payables –42 –42
Other operating liabilities 0 0
Net debt 0 0
Net identifiable assets 32 11 43
Goodwill 0
Consideration paid 43
Cash and cash
equivalents acquired 0
Net cash paid 43
Acquisitions made 2009 had no significant impact on the
Group’s result.
Acquisitions made in 2008
Meco
In April 2008 Husqvarna acquired Meco, Masterpiece Engineering
Company, based in Prescott, Arizona, USA. Meco is a
leading producer of floor saws for cutting concrete and
asphalt, primarily for highway construction and repair. The
consideration paid amounted to SEK 48m and goodwill
amounted to SEK 34m. The goodwill referred to synergies that
will be achieved with existing operation in terms of production
and distribution. In addition the acquisition complemented
Husqvarna’s product range for the construction industry and
reinforced the Group’s leading position in floor saws.
Sandvik Nora AB
In April 2008 Husqvarna acquired the assets and business
relating to products for the construction industry within Sandvik
Nora AB (previously Hagby Asahi AB), a company within
Sandvik’s Mining and Construction business area. The
acquired business comprises the production and sale of diamond
tools and related machines for sawing, drilling and
grinding. The acquisition complemented Husqvarna’s product
range for the construction industry and reinforced the
Group’s leading position in the Nordic region. The consideration
paid amounted to SEK 26m and goodwill amounted to
SEK 8m. The goodwill referred to synergies achieved within
Husqvarna’s existing operation in terms of production and
distribution. In addition, Hagby’s floor-grinding machines
complemented Husqvarna’s existing international product
offering.
Jenn Feng
In March 2008 Husqvarna signed an agreement with Jenn
Feng Co., Ltd. for the acquisition of the company’s operation
in outdoor products. Jenn Feng, a listed Taiwanese company,
is a leading producer of chainsaws and trimmers for the consumer
market. The product offering also comprised lawn
mowers, high-pressure washers and generators. The acquisition
was completed in several steps. The operations in North
America and Australia were consolidated as of 30 May 2008
and the Chinese operations were consolidated 31 December
2008. The total consideration paid for the acquired operating
assets and liabilities amounted to SEK 681m (including costs
directly attributable to the acquisition in an amount of
SEK 8m). Husqvarna has goodwill in the amount of SEK 301m.
The goodwill refers to synergies arising from the fact that
Jenn Feng’s products complement Husqvarna’s range of
handheld products for the consumer market. In addition Jenn
Feng products will be sold through Husqvarna’s global sales
organization. Husqvarna has recognized intangible assets of
SEK 64m, mainly referring to the McCulloch brand and the
right to use the brand in North America. The purchase price
allocation was preliminary at the end of 2008. During 2009
the purchase price allocation was finalised with an adjustment
to consideration paid resulting in a decrease in goodwill of
SEK –3m.
Jenn Feng
SEKm
Carrying
amount
Fair value
adjustment
Fair value
acquisition
balance
Goodwill 0 0 0
Other intangible assets 0 64 64
Property, plant and
equipment 165 0 165
Inventories 113 0 113
Trade receivables 50 0 50
Trade payables –2 0 –2
Other operating liabilities –10 0 –10
Net debt 0 0 0
Net identifiable assets 316 64 380
Goodwill 301
Consideration paid 681
Cash and cash
equivalents acquired 0
Net cash paid 681