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
Vision Ophthalmology Group GmbH, Germany April, 2021 700 190 Medtech
Healthcare 21 Group, Ireland April, 2021 1,700 450 Medtech
    3,048 837  
* Refers to conditions at the time of acquisition on a full-year basis.

Two acquisitions were completed during the interim period:

On April 7, 2021, all shares was acquired 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 April 8, 2021 and VOG is 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 April 12, 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. 

The effect of the acquisitions on the AddLife Group's net sales was SEK 587m, on EBITA SEK 69m, on operating profit SEK 25m and on profit after tax for the interim period SEK 13m. Had the acquistions, been completed on January 1, 2021, their impact would have been aproximately SEK 1,223m on net sales, on EBITA SEK 166m and on operating profit SEK 80m and SEK 49m on profit after tax.

The fair value of not yet paid contingent consideration for acquisitions made during the interim period is calculated to SEK 213m, which is approximately 98 percent of the maximum outcome. The outcome depends on the results achieved in the companies and has a set maximum level. An additional contingent consideration of SEK 6m has been paid during the interim period regarding the acquisition of Euroclone during year 2020. 

According to the preliminary acquisition analyses, the assets and liabilities included in the acquisitions carried out during the interim period 2021 were as follows:

Fair value   Vision Ophthalmology Group Healthcare 21 Group Total
Intangible non-current assets   821 890 1,711
Other non-current assets   54 163 217
Inventories   139 405 544
Other current assets   204 266 470
Deferred tax liability/tax asset   -163 -157 -320
Other liabilities   -268 -923 -1,191
Acquired net assets   787 644 1,431
Goodwill   1,232 2,002 3,234
Consideration¹   2,019 2,646 4,665
Less: cash and cash equivalents in acquired businesses   -67 -47 -114
Less: Consideration paid with shares   -1,004 -802 -1,806
Contingent consideration not yet paid   -187 -46 -233
Effect on the Group’s cash and cash equivalents   761 1,751 2,512
¹ The consideration is stated excluding acquisition expenses.    

Transaction costs for the acquisitions totalled SEK 53m and are recognised as selling expenses. Revaluation of liabilities for contingent consideration added costs of SEK 2m during the interim period, which is recognised as other operating costs.

Latest updated: 11/23/2021 2:52:46 PM by Vladimir Mironov (Awave)