In accordance with IFRS 3, “Business Combinations,” the Company accounts for business com- binations by applying the acquisition method as of the date when control over the financial and operating policies is effectively obtained. Any excess of the consideration transferred over the fair value of the net assets acquired is recorded as goodwill, which is allocated to those cash-generating units that are expected to benefit from the business combination. The results of operations of the acquired businesses are included in the Company’s consolidated finan- cial statements from the respective dates of acquisition until the dates of sale. Fair value meas- urement of assets acquired and liabilities assumed in a business combination is performed in the course of the allocation of the consideration transferred by using standard discounted cash flow methods based on input factors of fair value hierarchy level 3. Acquisitions in 2014 On December 18, 2014, ALTANA acquired the Brazilian company Overlake Vernizes Gráficos Ltda. (Overlake) through a share deal. The acquired company produces and markets over- print varnishes and will be integrated into the ACTEGA Coatings & Sealants division. The pre- liminary purchase price of € 12.5 million was paid in cash. On December 19, 2014, ALTANA acquired the Brazilian companies Premiata Tintas e Vernizes Gráficos Ltda. and Premiata Especialidades Químicas Ltda. (Premiata) through a share deal. The acquired companies produce printing inks and overprint varnishes and will be integrated into the ACTEGA Coatings & Sealants division. Of the preliminary purchase price of € 16.3 million an amount of € 14.8 million was paid in cash in 2014. The following table provides an overview of the provisional allocation of the consid- eration transferred to the assets acquired and liabilities assumed by ALTANA as of the acqui- sition date. Overlake Premiata in € million Goodwill 3.8 6.9 Other intangible assets 6.6 9.4 Property, plant and equipment 0.4 1.2 Inventories 2.5 1.6 Trade accounts receivable 2.6 4.8 Deferred tax assets 0.2 Other assets 0.2 0.4 Cash and cash equivalents 0.6 0.3 Provisions (0.1) Trade accounts payable (1.2) (1.6) Deferred tax liabilities (2.3) (3.2) Other liabilities (0.7) (3.6) Consideration transferred 12.5 16.3 Since the acquisitions were effected on December 18 and 19, 2014, they had no effect in 2014 on consolidated net sales and consolidated net income except for incidental acquisi- 96 Notes to Consolidated Financial Statements 3. Business Combinations and Disposals
E_ALT_GB15_160317_online
To see the actual publication please follow the link above