The KION Group acquired the business operations of the UK dealer Creighton on 28 February 2012, by acquiring 100 per cent of the share capital and voting rights in Creighton Materials Handling Ltd., Birmingham, United Kingdom (registered office relocated to Basingstoke, United Kingdom, on 28 February 2012), which itself holds 51 per cent of the share capital and voting rights in Linde Creighton Ltd., Basingstoke, United Kingdom. The KION Group already held the other 49 per cent of the share capital and voting rights in Linde Creighton Ltd. before the business combination. Creighton's business operations include an investment of 100 per cent in McLEMAN FORK LIFT SERVICES LTD., Basingstoke, United Kingdom. The acquisition has enabled the KION Group to further strengthen the leading position of the Linde brand and it's UK distribution and service network.
The carrying amount of the equity-investment in Linde Creighton Ltd. immediately prior to the acquisition date was €3,635 thousand. Remeasurement of the previously held investment (49 per cent) resulted in a fair value of €11,387 thousand. The difference of €7,752 thousand (amount on the acquisition date) was recognised in the income statement and reported as profit from equity-investments.
The acquisition-related costs of this business combination amounted to €60 thousand and have been recognised as an expense for the current period and recorded in Administrative expenses on the face of the consolidated income statement.
The table below shows the overall impact of this acquisition on the consolidated financial statements of KION Holding 1 GmbH based on the final fair values on the acquisition-date.
Impact of the acquisition on the financial position of the KION Group |
|
€ thousand |
Fair value at the |
|
|
Goodwill |
15,794 |
Other intangible assets |
5,017 |
Property, plant and equipment |
5,437 |
Deferred taxes (net) |
1,025 |
Inventories |
4,029 |
Trade receivables |
8,036 |
Cash and cash equivalents |
2,149 |
Other assets |
5,131 |
Total assets |
46,618 |
|
|
Provisions |
7,907 |
Liabilities |
15,472 |
Deferred taxes (net) |
0 |
Total liabilities |
23,379 |
Total net assets |
23,239 |
|
|
Cash payment |
11,852 |
Fair value of the purchase price obligation |
0 |
Consideration transferred |
11,852 |
Previously held share of equity (49 per cent in Linde Creighton Ltd.) |
11,387 |
Total |
23,239 |
The gross amounts of the receivables acquired as part of this transaction, which are exclusively trade receivables, totalled €8,183 thousand. At the acquisition date it was estimated that €147 thousand of these trade receivables were irrecoverable. Revenue rose by €50,076 thousand as a result of the acquisition. The net income (loss) reported for 2012 contains a profit of €1,382 thousand attributable to the entity acquired. If this business combination had been completed as at 1 January 2012, this would have had no further material impact on either the revenue or the net income (loss) reported by the KION Group for 2012.
Goodwill represents the expected strategic and geographical synergies that the KION Group is able to derive from the business combination. The goodwill arising from this acquisition is currently not tax deductible.
