73 NOTE 27 – ACQUISITIONS Kamani Oil Industries Pvt Ltd In the fourth quarter, AAK acquired 51 percent of the shares in Kamani Oil Industries Pvt Ltd, one of the leading companies in speciality and semi-speciality oils in India. The company has around 280 employees. The company has an annual volume of approximately 100,000 MT and had sales of approximately SEK 1,000 million in the last financial year. AAK may, via a put and call option, acquire the remaining 49 percent of the company within the next 3–7 years. The acquisition price for 51 percent of the shares amounts to approximately SEK 123 million and affected the Group’s cash and cash equivalents during the year, while the additional purchase price for the remaining 49 percent is entered as a liability in the consolidated balance sheet. Goodwill produced in connection with the transaction is attributable to expected additional sales of AAK’s products. The goodwill produced is not tax-deductible. The assets and liabilities recognised as a consequence of the acquisition are as follows: Fair value (SEK million) Goodwill 136 Contracts with customers 160 Trademarks 95 Property, plant and equipment 77 Financial assets 24 Inventories 127 Other current assets 71 Cash and cash equivalents 47 Financial liabilities -180 Provisions -295 Other current liabilities -183 Total net assets 79 Goodwill 91 Total acquisition with cash and cash equivalents 170 Net outflow of cash and cash equivalents on account of the acquisition Cash and cash equivalents paid for the acquisition 170 Cash and cash equivalents in the company acquired at the acquisition date -47 Impact on the Group's cash and cash equivalents 123 The company forms part of AAK’s sales and operating profit as from October 1, 2015. The acquisition had very limited impact on AAK’s operating profit for 2015.
AAK Annual Report 2015
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