4.3 Business combinations
The following table summarizes all considerations paid for businesses, as well as the assets and liabilities acquired and recognized at fair value as at the acquisition date for the full financial year 2019/20 and for the full financial year 2018/19 in comparison.
CHF million |
|
|
|
|
| Financial year ended 30.06.2020 |
| Financial year ended 30.06.2019 |
|
| Alvarado |
| Others |
| Total |
| Total |
Total consideration |
| 159.6 |
| 1.7 |
| 161.3 |
| 6.6 |
Cash paid |
| 158.0 |
| 1.1 |
| 159.1 |
| 6.2 |
Deferred payment |
| 0.7 |
| 0.6 |
| 1.3 |
| 0.1 |
Acquisition-related costs |
| 0.9 |
| 0.0 |
| 0.9 |
| 0.3 |
Identifiable assets and liabilities |
| 23.8 |
| 0.1 |
| 23.9 |
| 0.4 |
Cash and cash equivalents |
| 16.8 |
| 0.0 |
| 16.8 |
| 0.4 |
Trade receivables |
| 4.1 |
| 0.1 |
| 4.2 |
| 0.7 |
Inventories |
| 5.3 |
| 0.0 |
| 5.3 |
| 0.3 |
Current income tax assets |
| 1.8 |
| 0.0 |
| 1.8 |
| 0.0 |
Other current assets |
| 0.2 |
| 0.0 |
| 0.2 |
| 0.0 |
Property, plant, and equipment |
| 0.4 |
| 0.1 |
| 0.5 |
| 0.2 |
Deferred income tax assets |
| 0.2 |
| 0.0 |
| 0.2 |
| 0.0 |
Trade payables |
| –0.3 |
| –0.1 |
| –0.4 |
| –0.3 |
Current income tax liabilities |
| 0.0 |
| 0.0 |
| 0.0 |
| –0.1 |
Accrued and other current liabilities |
| –4.6 |
| 0.0 |
| –4.6 |
| –0.5 |
Provisions |
| –0.1 |
| 0.0 |
| –0.1 |
| 0.0 |
Non-current borrowings |
| 0.0 |
| 0.0 |
| 0.0 |
| –0.3 |
Goodwill |
| 135.8 |
| 1.6 |
| 137.4 |
| 6.2 |
Alvarado Manufacturing Co. Inc.
On 27 June 2019, dormakaba signed an agreement to acquire Alvarado Manufacturing Co. Inc., based in Chino (CA/USA). The transaction was closed on 31 July 2019. Alvarado is a leading manufacturer of physical access solutions in North America such as speed gates, turnstiles, and other admission devices with a focus on office, commercial and government buildings, as well as sports, leisure and entertainment facilities.
Accounting principles
Goodwill represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquired entity and the book value as at the acquisition date of any previous equity interest in the acquired entity over the fair value of the Group’s share of the identifiable net assets acquired. Only intangible assets purchased separately are recognized as part of an acquisition. The positive or negative goodwill resulting from acquisitions is offset in equity at the date of acquisition against retained earnings.
If the purchase price contains elements that are dependent on future results, they are estimated as accurately as possible at the date of acquisition and recognized in the balance sheet. In the event of any disparities when the definitive purchase price is settled, the goodwill offset in equity is adjusted accordingly. The consequences of a theoretical capitalization and amortization of goodwill are explained in the note on the theoretical equity and goodwill movement (3.4).