4.3 Business combinations and divestments

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 2020/21 and for the full financial year 2019/20 in comparison.

CHF million

 

Financial year ended 30.06.2021

 

Financial year ended 30.06.2020

 

 

Total

 

Total

Total consideration

 

20.5

 

161.3

Cash paid

 

19.9

 

159.1

Deferred payment

 

0.5

 

1.3

Acquisition-related costs

 

0.1

 

0.9

Identifiable assets and liabilities

 

2.7

 

23.9

Cash and cash equivalents

 

1.4

 

16.8

Trade receivables

 

3.2

 

4.2

Inventories

 

0.9

 

5.3

Current income tax assets

 

0.0

 

1.8

Other current assets

 

0.8

 

0.2

Property, plant, and equipment

 

0.5

 

0.5

Deferred income tax assets

 

0.2

 

0.2

Current borrowings

 

–0.4

 

0.0

Trade payables

 

–1.5

 

–0.4

Current income tax liabilities

 

–0.3

 

0.0

Accrued and other current liabilities

 

–1.7

 

–4.6

Provisions

 

0.0

 

–0.1

Non-current borrowings

 

–0.4

 

0.0

Goodwill

 

17.8

 

137.4

In the first half year 2020/21 dormakaba has acquired E Plus Nominees Pty Ltd., based in Melbourne (AUS), and 1st Access Group Ltd., based in Hertfordshire (UK). In the second half-year, dormakaba acquired Larsen's Automatic Controls, based in Central Queensland (AUS), R.T.R. Services Limited, based in Hertfordshire (UK), AXE (Porte Automatique Services), based in Champigny-sur-Marne (FR), and Judlin Fermetures, based in Paris (FR).
The goodwill resulting from these acquisitions is offset in equity against retained earnings.

Divestments

Norwegian project installation business

On 31 August 2020, dormakaba divested its project installation business in Norway. The buyer of the business is Låssenteret, which is a well-established Norwegian security installation group. With this transaction, Låssenteret and dormakaba intend to further strengthen their already existing commercial relationship.

Yantai DORMA Tri-Circle Lock Co. Ltd.

On 30 June 2021, dormakaba divested its 60% share in Yantai DORMA Tri-Circle Lock Co. Ltd. The buyer is Yantai Tri-Circle International Trading Co., Ltd. located in Shandong, China, and holder of the 40% minority share.

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).

 
 

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