I.A. Hedin Bil - Annual Report 2018 1
NOTE 26 BUSINESS ACQUISITIONS Acquisitions in 201
8 Acquisitions in 2017 On April 1st, Hedin Belgien Bil AB acquired three companies in Belgium, including seven dealerships in and around Ghent, with sales and aftermarket service of Mercedes-Benz passenger cars, commercial vehicles, trucks and Smart. The purchase amounted to kSEK 394,271 and included four real estates. kSEK 41,460 of the purchase is located to customer relations which is reported as intangible fixed assets, an amortized over seven years. Goodwill of kSEK 78,424 is attributable to synergies with other car operations and future sales. Acquisition costs amounted to approximately kSEK 600. On May 3rd, Hedin Mölndal Bil AB agreed to acquire Motorcentralen i Eskilstuna AB, including a sales and after-market dealership for Ford passenger cars and commercial vehicles. The purchase amounted to kSEK 9,511. Goodwill of kSEK 5,768 is attributable to synergies within the Ford business. The minority stake in GS Bildeler was acquired on June 21st for kSEK 24,292. AB Englunds Bil & Motorverkstad was acquired on May 9th for kSEK 24,000 by Bavaria Sverige Bil AB. The company’s businesses are sales and aftermarket service for a BMW dealership in Luleå. Goodwill of kSEK 18,459 is attributable to synergies within the BMW business in Bavaria. On August 22nd, Hedin Belgien Bil AB acquired four companies including five dealerships in Antwerp, Belgium. The companies are dealers of Mercedes-Benz passenger cars. The purchase amounted to kSEK 223,543, including acquired customer relations of kSEK 90,411 which is reported as intangible fixed assets and amortized over seven years. Goodwill of 79,000 kSEK is attributable to synergies with our present business in Belgium. Acquisition costs amounted to approximately kSEK 1,600. On September 28th Skadecenter i Borås AB was acquired by Hedin Göteborg Bil AB for kSEK 23,680. The company runs a body repair workshop in Borås. The acqusition included real estate, which has been transferred to I.A. Hedin Fastighet AB. On October 5th, GS Bildeler AS acquired 67 percent in the Norwegian company ConLogo AS for kSEK 2,823, by issue of new shares. The price includes a goodwill of kSEK 1,019. The company is an importer of vehicle care products. On January 2nd, I.A. Hedin Bil AB through Hedin Mölndal Bil AB acquired the Ford business in southern Stockholm from Bilia. The purchase price amounted to kSEK 54,050, incl. a goodwill of kSEK 8,000. Ana Motorcentrum AB, with operations in Trollhättan and Lysekil, was acquired on May 2nd. The purchase amounted to kSEK 313. The negative goodwill arising of kSEK 10,000 relates to the compensation for restructuring costs and has been recognized as income on the date of acquisition. On May 18th, PCB Västsverige AB was acquired, including two real estate properties. The company is a Porsche dealer and its operations are conducted from three plants in Mölndal, Borås and Linköping. The purchase price of kSEK 147,500 includes a goodwill of kSEK 91,380 that is attributable to synergies and future sales. The properties were sold after being acquired. The acquisition costs amount to approx. kSEK 200. Miklagruppen AS was acquired on October 18th. The acquisition includes Bavaria Norge AS, Bavaria Sverige Bil AB, KC Motors AB and GS Bildeler AS. The group is a dealer of BMW and MINI in Sweden and Norway, Porsche in Norway and KIA in Sweden. The operations are conducted from 24 full service facilities. The purchase price amounted to kSEK 1,149,784. This includes acquired customer relations of 285,365. Goodwill of kSEK 796,348 is attributable to synergies with other car operations and future sales. The acquisition costs amount to approx. kSEK 300. JC Eriksson Bilteam i Gävle AB was acquired on December 20th for SEK 1. The negative goodwill arising on kSEK 10,401 has been recognized in the acquisition. The total value of the acquired assets and liabilities is shown in the table below, which also shows cash flow effects related to the acquisitions. 74 I.A. HEDIN BIL AB / ANNUAL REPORT / 2018