C. Acquisitions
At the beginning of June 2007, Andritz acquired 50% of the Brazilian company Sindus Human Technology for approximately MEUR 5.9. Sindus specializes in servicing pulp and paper plants, thus complementing the existing service offering of the Pulp and Paper Business Area. Sindus is accounted for as a joint venture in the consolidated financial statements.
In December 2007, Andritz AG acquired 100% of the Hungarian manufacturing company Tigép Kft.; Tigép will be used as manufacturing location for heavy machinery especially for Hydro Power. Production bottlenecks can be eliminated or avoided by this increase of capacity.
Since their dates of the acquisition, the acquired companies contributed TEUR 5,875 to the Andritz Group's Sales and TEUR 387 to the Andritz Group's EBIT. If the businesses had been acquired at the beginning of 2007, the Group's Sales would have been TEUR 3,301,526 and the Group's EBIT would have amounted to TEUR 192,911.
The aggregate purchase price of the business combinations effected in 2007 amounted to TEUR 27,887, direct costs of acquisition amounted to TEUR 192.
The estimated fair values of the assets acquired and liabilities assumed are as follows:
| (in TEUR) | 2007 |
| Current assets | 16,966 |
| Intangible assets | 2,566 |
| Goodwill | 7,229 |
| Property, plant and equipment | 14,020 |
| Current liabilities | (10,224) |
| Non-current liabilities | (999) |
| Liabilities for deferred taxes | (1,671) |
| Net assets acquired | 27,887 |
Acquired assets (Download size 21 KB)
The goodwill recognized in cause of a business combination comprises acquired intangibles, which could not be recognized separately, such as experienced and trained workforce and the acquired market positions.
The initial accounting for the companies acquired in 2007 is based on preliminary figures. 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 according to IFRS.
The initial accounting for the companies acquired in 2006 was based on preliminary figures. The changes made for the acquisitions within the 12 months after the acquisition date according to IFRS 3 result in the following changes in assets and liabilities as of December 31, 2006:
| (in TEUR) | |
| Goodwill | 15,225 |
| Other current receivables | (1,750) |
| Other current liabilities | 13,475 |
Acquisitions changes (Download size 20 KB)
Due to these changes the respective notes have been restated accordingly.