Note 38 - Acquisitions

On July 1, 2013, Duni acquired the assets of Song Seng Associates Pte Ltd in Singapore, which is a leading supplier of single-use packaging for food and drink in Singapore, with a growing export market in Southeast Asia. As a result of the acquisition, Duni is expected to strengthen its presence on these markets. Duni Song Seng is consolidated within the Professional business area. 

Acquisition-related expenses of SEK 2.8 m are included in 'Other operating expenses' in the income statement for the 2013 financial year.

The total purchase price amounts to SEK 76 m, of which SEK 57  m was paid in cash and SEK 19 m constitutes a supplemental purchase price which is conditional on the earnings trend in the company. The fair value of the supplemental purchase price constitutes an assessment of the likelihood that the earnings trend will be achieved during the coming three years.

The fair value of identifiable net assets amounts to SEK 26 m, of which an intangible assets in the form of customer relations has been identified totalling SEK 25 m. In addition, goodwill of SEK 50 m arises through the acquisition. This relates to acquired favorable purchasing channels as well as a platform for Duni in Asia. No part of the reported goodwill is expected to be deductible in conjunction with income taxation.

Sales generated by Duni Song Seng, which are included in the consolidated income statement since July 1, 2013, amount to SEK 51.5 m. Duni Song Seng has also contributed income after tax of SEK 3.7 m for the same period. Had Duni Song Seng been consolidated commencing January 1, 2013, the consolidated income statement would have reported additional sales of SEK 46.5 m.

Accounts receivable and other current receivables correspond to the contractual amounts, since it is anticipated that it will be possible to collect all accounts receivable and other current receivables.

No acquisitions took place during the financial year Jan 1, 2012 - Dec 31, 2012.