Acquisitions completed from the 2021 financial year are distributed among the Group’s business areas as follows:
|Acquisitions||Time||Net Sales, SEKm*||Number of employees*||Business area|
|AddVision, Germany||April, 2021||700||190||Medtech|
|Healthcare 21 Group, Ireland||April, 2021||1,700||450||Medtech|
|Bio-Connect Group, Netherlands||September, 2021||140||31||Labtech|
|Fischer Medical ApS, Denmark||November, 2021||60||12||Medtech|
|Camanio AB, Sweden||December, 2021||13||18||Medtech|
|MBA Incorporado S.L, Spain||January, 2022||670||285||Medtech|
|Business from Telia Health Monitoring, Sweden||March, 2022||4||8||Medtech|
|O’Flynn Medical Ltd, Ireland||April, 2022||64||36||Medtech|
|BioCat GmbH, Germany||April, 2022||90||20||Labtech|
|JK Lab Nordic AB, Sweden||July, 2022||24||6||Labtech|
|* Refers to conditions at the time of acquisition on a full-year basis.|
Five acquisitions have been completed during the interim period:
On December 20, 2021, an agreement was signed to acquire the operations from Telia Health Monitoring to the Medtech business area. Telia Health Monitoring develop and provides a digital platform solution that enables self-monitoring by patients with chronic diseases. Access took place on March 1, 2022 and the business, with sales of SEK 4m, and its eight employees, have been integrated into Camanio.
On December 22, 2021, an agreement was signed to acquire all the shares in MBA Incorporade S.L, a leading Spanish orthopaedic and trauma surgery business. MBA is acquired from Atlanta Private Equity, which owns approximately 75 percent, and a number of minority shareholders, which own 25 percent. The final purchase price amounts to a total of EUR 59m after debt settlement and is financed through extended credit facilities. MBA will operate as a separate subgroup and will be part of the Medtech business area. The acquisition was completed and the shares accessed on January 20, 2022. MBA has annual net sales of approximately SEK 670m and 285 employees.
On 1 April 2022, AddLife acquired all shares in the Irish company O’Flynn Medical Ltd. O’Flynn Medical is an independent distributor offering product sales, rental and technical services to the hospital sector, private customers and nursing homes in Ireland. The company will become part of the Healthcare 21 Group, which AddLife acquired to the business area Medtech in 2021. O'Flynn has sales of approximately EUR 6.4m and 36 employees.
On 1 April 2022, AddLife acquired all shares in the German company BioCat GmbH to the Labtech business area. BioCat is a specialized distributor of products and services to the life science research market with annual revenues of EUR 9m and has 20 employees. The company is located in Germany but also has sales in Austria and Switzerland.
On July 1, 2022, AddLife acquired all shares in the company JK Lab Nordic AB to the Labtech business area. JK Lab is a specialized distributor of instruments and services in material sampling and has sales of approximately SEK 25m and 6 employees. The Company has been integrated into Bergman Labora.
The effect of the acquired companies completed during the interim period on the AddLife Group's net sales was SEK 692m, on EBITA SEK 112m, on operating profit SEK 77m and on profit after tax for the interim period SEK 42m. Had the acquistions, been completed on January 1, 2022, their impact would have been aproximately SEK 750m on net sales, on EBITA SEK 123m and on operating profit SEK 85m and SEK 48m on profit after tax.
According to the preliminary acquisition analyses, the assets and liabilities included in the acquisitions carried out during the financial year 2022 were as follows:
|Intangible non-current assets||582|
|Other non-current assets||428|
|Other current assets||457|
|Deferred tax liability/tax asset||-133|
|Acquired net assets||581|
|Less: cash and cash equivalents in acquired businesses||-200|
|Contingent consideration not yet paid||-18|
|Effect on the Group’s cash and cash equivalents||771|
|¹ The consideration is stated excluding acquisition expenses.|
The goodwill resulting from the acquisitions is attributable to expectations that the Group's position in the market in question for each acquisition will grow stronger and to the knowledge accumulated in the companies acquired. Transaction costs for the acquisitions totalled SEK 12m and are recognised as selling expenses. Revaluation of liabilities for contingent consideration added costs of SEK 4m during the interim period, which is recognised as other operating costs. A contingent consideration of SEK 31m has been paid during the interim period regarding the acquisition of Euroclone and Ropox during year 2020. The first contingent consideration, out of two, of SEK 85m, linked to the acquisition of AddVision, which was based on an optimistic sales trend without the impact of COVID-19, has been reversed during the interim period and recognised as other operating income. The reversal of the contingent consideration has had no impact on the valuation of goodwill linked to the acquisition.