[5] Acquisition
On 7 May 2015, the KION Group agreed to purchase the logistics automation division of automation specialist Agidens International NV (formerly the Egemin Group). The transaction was closed on 7 August 2015. The purchase price for the 100.0 per cent stake in Egemin NV, which is headquartered in Belgium, was €72.5 million. Through this acquisition, the KION Group is significantly expanding its expertise in system solutions for intralogistics and automation, fields that are seeing increasingly strong demand and will play a crucial role in connection with Industry 4.0.
The incidental acquisition costs incurred by this business combination amounted to €0.5 million and have been recognised as an expense for the current period and reported as administrative expenses in the consolidated income statement. The impact of this acquisition on the consolidated financial statements of KION GROUP AG based on the provisional figures available at the acquisition date is shown in > TABLE 043.
Impact of the acquisition on the financial position of the KION Group |
043 |
in € million |
Fair value at the acquisition date |
Goodwill |
50.9 |
Other intangible assets |
25.2 |
Trade receivables |
15.5 |
Cash and cash equivalents |
3.9 |
Other assets |
13.7 |
Total assets |
109.2 |
|
|
Trade payables |
9.7 |
Other current financial liabilities |
17.1 |
Other liabilities |
9.9 |
Total liabilities |
36.7 |
|
|
Total net assets |
72.5 |
|
|
Cash payment |
72.5 |
Consideration transferred |
72.5 |
The receivables acquired as part of this transaction, which constitute trade receivables including receivables from construction contracts that have not yet been invoiced to the value of €5.9 million, totalled €16.6 million gross. At the acquisition date, it was assumed that trade receivables of €0.7 million, and receivables from construction contracts that have not yet been invoiced to the value of €0.4 million, were not recoverable. Consolidated revenue rose by €33.0 million as a result of the acquisition. The net income reported for 2015 contains a profit totalling €0.8 million attributable to the entities acquired. If the business combination had been completed by 1 January 2015, this would have generated additional revenue of €67.7 million and additional net income of €0.5 million for the KION Group in 2015.
The purchase price allocation for the acquisition described above was only provisional as at 31 December 2015 because some details, particularly in the area of construction contracts, had not yet been fully evaluated. Goodwill constitutes the strategic and geographical synergies that the KION Group expects to derive from this business combination. The goodwill arising from this acquisition is currently not tax deductible.
The line item ‘Acquisition of subsidiaries (net of cash acquired) and other equity investments’ in the consolidated statement of cash flows contains a net cash outflow of €68.6 million for the acquisition of Egemin Automation.