[5] Acquisitions
Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG
On February 1, 2021, the remaining 79.0 percent of the shares in the German dealer Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG and in the general partner JETSCHKE GmbH, both headquartered in Hamburg, were acquired. The other 21.0 percent of the share capital and voting rights in Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG and JETSCHKE GmbH were already held by Linde Material Handling GmbH (as an equity investment in an associate) prior to the acquisition of the shares on February 1, 2021. The purchase consideration for the net assets acquired was €13.9 million. By acquiring Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG, the KION Group has strengthened Linde Material Handling’s dealer network. The company is a wholesaler and service provider that specializes in intralogistics equipment, electric and diesel trucks, warehouse trucks, container handlers, heavy-goods handlers, sideloaders, and sweepers.
The equity-accounted carrying amount of the investment in Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG immediately prior to the acquisition date came to €1.2 million. Remeasurement of the investment of 21.0 percent previously held resulted in a fair value of €3.7 million. The difference of €2.5 million was taken to income and recognized under the share of profit (loss) of equity-accounted investments in the consolidated income statement.
The impact of this acquisition on the consolidated financial statements of KION GROUP AG based on the final figures as at the acquisition date is shown in the following table.
in € million |
Fair value at the acquisition date |
|---|---|
Goodwill |
7.1 |
Customer relationships |
7.6 |
Other intangible assets |
0.8 |
Rental/Leased assets |
41.7 |
Lease receivables |
21.9 |
Trade receivables |
7.7 |
Other assets |
13.2 |
Total assets |
100.1 |
|
|
Financial liabilities |
5.7 |
Liabilities from lease business |
44.1 |
Liabilities from short-term rental business |
14.9 |
Other liabilities |
17.9 |
Total liabilities |
82.5 |
|
|
Total net assets |
17.6 |
|
|
Cash payment |
13.9 |
Consideration transferred |
13.9 |
Previously held share of equity (21.0 percent in Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG, Hamburg) |
3.7 |
Total |
17.6 |
In 2021, consolidated revenue rose by €43.5 million and net income by €2.8 million as a result of the acquisition.
If the business combination had been completed by January 1, 2021, this would have had no further material impact on either the revenue or the net income (loss) reported by the KION Group in 2021.
Goodwill constitutes the strategic synergies that the KION Group expects to derive from this business combination. The goodwill arising from this acquisition is tax deductible in an amount of €5.5 million. The derived goodwill is assigned to the KION ITS EMEA group of cash-generating units.
The line item ‘Acquisition of subsidiaries / other businesses (net of cash acquired)’ in the consolidated statement of cash flows contains a net cash outflow of €11.9 million for the acquisition of the remaining Jetschke shares. An advance payment of €2.0 million had already been made in December 2020.