Financial Statements - Solvay

The acquisitions in 2008 consist mainly of:
• the recognition of milestones and earn-outs payable to the former Fournier shareholders (EUR 200 million),
• the acquisition of Innogenetics nv in Belgium (EUR 189 million),
• the acquisition of Alexandria Sodium Carbonate Co, a sodium carbonate manufacturer located in Egypt (EUR 107 million),
• the acquisition of Ajedium in the United States (EUR 8 million).
“Other” (EUR 49 million) refers to companies of non-signifi cant size which are neither consolidated nor accounted for by
the equity method and includes mainly the following acquisitions in 2008:
• Rusvinyl in Russia (EUR 14 million),
• Solalban Energia in Argentina (EUR 11 million),
• Solvay Biochemicals Thailand (EUR 8 million),
• The joint venture for H 2 O 2 in Thailand (EUR 8 million).
The disposal of subsidiaries amounts to EUR 100 million and is mainly related to the sale of Solvay Engineered Polymers
for EUR 90 million, generating a capital gain of EUR 30 million.
The acquisition of tangible/intangible assets in 2008 relates to various projects, many of them extending over several years:
• the conversion of mercury electrolysis units to membrane electrolysis and the extension of VCM/PVC manufacturing
units at Santo André (Brazil);
• the construction of a hydrogen peroxide unit in a joint venture with BASF and an oxychlorination unit at Zandvliet
(Belgium);
• the SIMCOR ® co-promotion agreement in Pharmaceuticals;
• the capacity increase at the Devnya soda plant (Bulgaria);
• the PVDF capacity increase at Tavaux (France);
• the Fluorolink capacity increase at Spinetta (Italy).
Acquisitions and disposals of consolidated subsidiaries in 2008 are set out in the tables below.
Acquisitions of subsidiaries
EUR Million Total
Intangible assets 35
Tangible assets 49
Other investments 3
Deferred tax assets 1
Loans and other non-current assets 1
Non-current assets 89
Current assets other than cash and cash equivalents 34
Cash and cash equivalents 9
Current assets 43
Long-term provisions 1
Deferred tax liabilities 1
Long-term fi nancial debt 10
Non-current liabilities 12
Current liabilities 63
Net assets 57
Goodwill 283
Price paid at 31/12/2008 340
Bank balances and cash acquired 0
Net cash outlay on acquisition - prior years 32
Net cash outlay on acquisition - 2008 308
Financial
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Solvay Global Annual Report 2008
Financial