At the end of 2007, we completed the acquisition of a 100% interest in Solvent Innovation GmbH of Cologne, Germany, for a purchase price of € 2.0 million. The company, which was consolidated for the first time as of January 1, 2008, is strengthening the research activities of our Performance & Life Science Chemicals division in the field of ionic liquids.
On February 29, 2008, Merck acquired a 100% interest in SeQuant AB of Umea, Sweden, for € 6.9 million. This included transaction costs of € 0.1 million. The company is strengthening the activities of our Performance & Life Science Chemicals division in the field of chromatography. The company was consolidated for the first time on March 1, 2008.
On June 30, 2008, Litec-LLL GmbH of Greifswald, Germany was acquired in full for € 5.6 million (including transaction costs of € 0.6 million). The company specializes in research and development as well as production and marketing of ortho-silicate lighting materials. The acquisition of the company, which was founded in 2002, gives Merck access to the business with light sources for LEDs. The company was consolidated for the first time on July 1, 2008 and is part of the Liquid Crystals division.
On August 21 and 27, we increased our interest in the fully consolidated Indonesian company PT Merck Tbk of Jakarta, Indonesia, by a total of 12.66% to 86.65%, for € 10.2 million.
On December 1, 2008, Merck acquired Bio-Fyt Pharma N.V. of Sint-Jans-Molenbeek, Belgium, in full for € 30.0 million. Including the assumption of cash and transaction costs of € 0.2 million, the total cost of the acquisition was € 32.6 million. The company, which is now part of the Consumer Health Care division, develops and markets products for mobility, womens health and everyday health protection. The company was consolidated for the first time on December 1, 2008.
Overall, the changes in the companies consolidated due to acquisitions had the following effects on the consolidated balance sheet:
| XLS |
|
Acquisitions |
Disposals/ |
||
€ million |
Pre-acquisition book value |
Adjustment |
Fair value |
Disposal at book value |
Goodwill |
– |
26.7 |
26.7 |
– |
Other intangible assets |
0.4 |
30.6 |
31.0 |
– |
Property, plant and equipment |
1.1 |
–0.3 |
0.8 |
– |
Other non-current assets |
0.2 |
0.1 |
0.3 |
– |
Cash and cash equivalents |
4.3 |
– |
4.3 |
– |
Other current assets |
3.4 |
1.6 |
5.0 |
– |
Current and non-current liabilities |
3.5 |
9.8 |
13.3 |
– |
The acquisition of Bio-Fyt Pharma N.V, of Sint-Jans-Molenbeek, Belgium, was responsible for € 14.8 million of the effect from the adjustment of goodwill. A further € 7.7 million was due to the purchase of additional holdings in PT Merck Tbk of Jakarta, Indonesia. € 4.2 million resulted from the other named acquisitions.
The adjustment of other intangible assets primarily includes the purchase price allocation to brands, product rights, patents and technical know-how.
Taking into account the acquisitions made in 2008, sales and operating result were impacted as follows in the reporting period:
| XLS |
€ million |
Acquisitions/ |
Disposals/ |
Sales |
1.4 |
– |
Cost of sales |
–2.2 |
– |
Other income/expenses |
–1.9 |
– |
Operating result |
–2.7 |
– |