Annual - Johnson Electric

42. Business combinations
NOTES TO THE ACCOUNTS
On 8th November 2005, the Group acquired 100% of the share capital of Parlex Corporation (Parlex), a world
leader in the design and manufacture of flexible, interconnect products operating in the United States. The acquired
business contributed revenues of US$47,237,000 and net loss of US$2,123,000 (after restructuring provisions of
US$1,105,000) to the Group for the period from the date of acquisition to 31st March 2006.
On 17th November 2005, the Group acquired 100% of the share capital of Saia-Burgess Electronics Holding AG,
a leader supplier of stepper motors, switches, actuators and electronic controllers to customers within the automotive,
industrial and infrastructure automation industry operating in Swiss and most western European countries. The
acquired business contributed revenues of US$226,610,000 and net loss of US$994,000 (after restructuring provisions
of US$7,842,000) to the Group for the period from the date of acquisition to 31st March 2006.
During the year, the Group further acquired 34.1% of the share capital of China Autoparts, Inc., a manufacturer of
engine blocks, to a total of 54.1% shares held. The acquired business contributed revenues of US$11,184,000 and
net profit of US$1,149,000 to the Group for the period from the date of acquisition to 31st March 2006.
It is impracticable to disclose the aggregate revenue and results of the acquired companies as though they had been
acquired on 1st April 2005. The business and other conditions that might have prevailed throughout the financial
year, and their possible impact on integration and other activities, are not known and cannot be estimated.
Details of net assets acquired and goodwill are as follows:
2006 2005
US$’000 US$’000
Purchase consideration: 611,056 34,024
Fair value of net assets acquired – shown as below (279,366) (7,651)
Goodwill (note 9) 331,690 26,373
Johnson Electric Holdings Limited 107