Acquisitions completed from the 2020 financial year are distributed among the Group’s business areas as follows:

Acquisitions Time Net Sales, SEKm* Number of employees* Business area
EuroClone S.p.A, Italy January 2020 280 58 Labtech
TechniPro PulvoMed Pty Ltd, Australia September, 2020 13 5 Medtech
Ropox A/S, Denmark October, 2020 95 73 Medtech
Dach Medical Group Holding AG, Austria October, 2020 145 23 Medtech
Zafe Care Systems AB, Sweden October, 2020 35 21 Medtech
Biomedica Italia s.r.l (SIAD Healthcare), Italy December, 2020 80 17 Medtech
    648 197  
Acquisitions after the end of the interim period Time Net Sales, SEKm* Number of employees* Business area
Vision Ophthalmology Group GmbH, Germany April, 2021 700 190 Medtech
Healthcare 21 Group, Ireland April, 2021 1,700 450 Medtech
    2,400 640  
* Refers to conditions at the time of acquisition on a full-year basis.

The fair value of not yet paid contingent consideration for acquisitions made during previous periods is calculated to SEK 83m, which is approximately 85 percent of the maximum outcome. The outcome depends on the results achieved in the companies and has a set maximum level. No acquisitions were made during the interim period. An additional contingent consideration of SEK 6m has been paid regarding the acquisition of Euroclone during year 2020.

Acquisitions after the end of the interim period

Two acquisitions were completed since the end of the interim period:

On 7 April 2021, it was announced that AddLife AB (publ) entered into an agreement to acquire all shares in Vision Ophthalmology Group GmbH (VOG), a leading European distributor and manufacturer of ophthalmology and eye surgery products, with operations in Switzerland, Germany, the United Kingdom and Poland. The deal closed on 8 April 2021 and VOG will be consolidated into AddLife from this date. The initial purchase price was EUR 165m, 50 percent of which was paid in cash and 50 percent was paid via existing repurchased and newly issued class B shares. The number of shares issued totalled 5,362,216 class B shares, of which 3,862,216 shares were newly issued class B shares and 1,500,000 class B shares were existing shares held in treasury. An additional cash purchase price of a maximum of EUR 18m may become payable by 2024 at the latest, based on financial results achieved by the business through 2023. 

On 12 April 2021, another acquisition, Healthcare 21 Group, a leading independent life science distributor with operations in Ireland and the UK, was completed. Access to the shares took place on the same day as the acquisition date and HC21 is consolidated from this date. The initial purchase price was EUR 240m, 74 percent of which was paid in cash, financed through existing and expanded credit facilities, and approximately 26 percent was paid for using 4,089,742 newly issued class B shares in AddLife. An additional cash consideration of a maximum of EUR 5m may become payable to the management by 2024 at the latest, based on the financial results achieved by the business through 2023. 

Acquisition analyses for VOG and HC21 are being prepared and preliminary acquisition analyses will be provided as of the second quarter of 2021.

Pro forma 2020 financial statements

Below are the pro forma figures for AddLife for the 2020 financial year including the acquisitions of VOG and HC21. The accounts are prepared under the assumption that both companies were fully owned throughout the 2020 financial year. The amounts included for VOG and HC21 respectively refer to unaudited figures for the 2020 financial year and have been adjusted to reflect normalised operations without one-off restructuring costs, Covid-19 related sales, change in distribution business and interest on shareholder loans. The figures do not include any synergies or transaction costs. Moreover, IFRS 16 Leases was not taken into account for the acquired companies in the pro forma balance sheet and income statement. Amortisation of acquisition-related intangible assets and acquisition-related financing costs have been estimated. The balance sheet has been restated to reflect acquisition-related intangible assets and accrued liabilities to credit institutions related to the acquisitions. In calculating earnings per share, the two new issues completed in connection with the acquisitions were taken into account. 

Income statement AddLife 2020 Proforma 2020
Net sales 5,273 7,615
Cost of sales -3,455 -4,790
Gross profit 1,818 2,824
Other external costs -1,146 -1,998
Operating profit 672 826
Financial income and expenses -13 -65
Profit after financial items 659 761
Tax -139 -156
Profit for the period 520 605
EBITDA 946 1,305
EBITA 802 1,120
EBITA margin 15.2% 14.7%
Earnings per share before dilution 4.63 4.98
Average number of outstanding share, ’000 112,127 121,578
Balance sheet AddLife 2020 Proforma 2020
Intangible assets 2,003 6,509
Other non-current assets 454 546
Current assets 1,693 2,640
TOTAL ASSETS 4,150 9,695
Equity 1,890 3,457
Interest bearing liabilities 916 4,218
Non-interest bearing liabilities 1,344 2,020
Financial net liabilities 700 3,897
Net debt/equity ratio 0.4 1.1
Equity ratio 46% 36%
Financial net liabilities/EBITDA 0.7 3.0
Latest updated: 11/23/2021 12:30:54 PM by Vladimir Mironov (Awave)