C. Acquisitions
In the first half of 2006, Andritz acquired 100% of Küsters Group with locations in Germany and the USA. Küsters complements the products for paper and board machines in the Pulp and Paper Business Area.
In April 2006, 100% of the Brazil based company Andritz Pilão Equipamentos Ltda. was acquired. Pilão complements the products for the service business for Pulp and Paper and for stock preparation for the paper industry.
In June 2006, the Company acquired 100% of VA TECH HYDRO Group, one of the four largest, international systems suppliers for hydropower stations. In addition to supplying electromechanical equipment and services for hydropower stations including automation VA TECH HYDRO is a well known producer of turbo generators. VA TECH HYDRO is reported in the Hydro Power Business Area.
Andritz acquired the worldwide chip thickness screening business of BMH Wood Technology Oy, Finland, in September 2006. This transaction strengthens the position of Andritz as a leading supplier of wood processing equipment and services in the Pulp and Paper Business Area.
In December 2006, Andritz acquired the Coater Division for paper production from Bachofen+Meier AG (BMB), Switzerland. This Division complements the product portfolio in the area of paper and board production equipment enabling Andritz to offer complete systems. The Coater Division will be managed as a separate company under the name of Andritz BMB AG, based in Bülach, Switzerland.
In October 2006, Andritz acquired the US based CONTEC Decanter Inc. CONTEC specializes in the repair and maintenance of centrifuges and separators for various businesses. With this acquisition, the services organization in the Environment and Process Business Area is complemented.
Since their dates of acquisition, the businesses acquired in 2006 contributed EUR 449,229 thousand to Sales and EUR 18,212 thousand to EBITA (Earnings before Interest, Taxes, and Amortization of Goodwill) of the Andritz Group. If the businesses had been acquired at the beginning of 2006, the Group’s additional Sales would have been EUR 768,659 thousand, and the Group’s additional EBITA would have amounted to EUR 20,358 thousand.
The aggregate purchase price of the business combinations effected in 2006 amounted to EUR 237,855 thousand, including direct cost of acquisition of EUR 3,631 thousand.
The estimated fair values of the assets acquired and liabilities assumed are as follows:
| (in TEUR) | 2006 | |
| Current assets | 552,788 | |
| Intangible assets | 45,252 | |
| Goodwill | 90,480 | |
| Property, plant and equipment | 90,037 | |
| Other non-current assets | 16,632 | |
| Deferred tax asset | 25,977 | |
| Current liabilities | (467,415) | |
| Non-current liabilities | (99,851) | |
| Liabilities for deferred taxes | (20,189) | |
| Net assets acquired | 233,711 |
rep06-en-acquired_assets.xls (Download size 21 KB)
The factors contributing to goodwill recognized are assets which are not separately recognized such as an experiencend and trained workforce, available reference plants, the existing customer base and the acquired market positions.
Disclosure of the carrying amounts of the acquired companies` assets and liabilities recorded immediately before the acquisitions in accordance with IFRS would be impracticable, as these amounts are not available under IFRS.
Initial accounting for VA TECH HYDRO Group in the consolidated financial statements is based on preliminary figures because of the size and the complexity of the business combination. The first time consolidation of the other acquisitions is also based on preliminary figures.
