GSK Annual Report 2002

108 GlaxoSmithKline Notes to the financial statements
31 Acquisitions and disposals
Details of the acquisition and disposal of subsidiary and associated undertakings and joint ventures are given below.
2002 Book Fair value Net assets Goodwill Cost of
values adjustments acquired capitalised acquisition
Acquisitions £m £m £m £m £m
Iterfi – Sterilyo (7) 4 (3) 21 18
Human Kft 10 – 10 1 11
Other – – – 1 1
3 4 7 23 30
Iterfi – Sterilyo
During 2002 the Group acquired Iterfi-Sterilyo Group for an initial cash consideration of £9 million. A further payment will be payable
during 2003, up to a maximum of £9 million, depending on the financial performance of the acquired company during 2002. The net
assets of Iterfi-Sterilyo have been incorporated in the financial statements at their provisional fair values.
Human Kft
During 2002 the Group acquired the vaccine related assets of Human Kft, a manufacturing business located in Hungary, for a cash
consideration of £11 million.
Disposals
SB Clinical Laboratories
A cash refund of £6 million was received during 2002 in respect of indemnified liabilities arising from the SB Clinical Laboratories disposal
which occurred in 1999. The refund is as a result of a successful case in the US Court of Appeal.
SB Clinical Iterfi - Human
Laboratories Sterilyo Kft Other Total
Cash flows £m £m £m £m £m
Cash consideration paid – 9 11 6 26
Cash acquired – – – – –
Net cash payment on acquisitions – 9 11 6 26
Net cash proceeds from disposals 6 – – – 6
2001 Book Fair value Net assets Goodwill Cost of
values adjustments acquired capitalised acquisition
Acquisitions £m £m £m £m £m
Block Drug 491 352 843 – 843
Shionogi joint venture 31 – 31 – 31
Other 13 (8) 5 13 18
535 344 879 13 892
Block Drug Company Inc.
In January 2001, the Group acquired Block Drug for cash consideration of £843 million which represented the fair value of the assets
acquired.
Shionogi joint venture
During 2001 the Group established a joint venture with Shionogi to develop and commercialise a number of compounds contributed by
both parties. The Group acquired 50 per cent of the equity share capital for a cash consideration of £31 million, and has committed to
make further contributions if certain development milestones are achieved.