Reebok 2008 Annual Report Download - page 168

164 Consolidated Financial Statements Notes
4 Acquisition /disposal of subsidiaries as well as assets and liabilities
Effective January 3, 2008, adidas Canada acquired 100% of the shares of Saxon Athletic Manu-
facturing, Inc. for a purchase price in the amount of CAD 4.6 million. Based in Brantford /Ontario
(Canada), Saxon Athletic is a design, development, marketing and manufacturing company for
team uniforms worn by professional and amateur teams throughout North America.
The acquisition had the following effect on the Group’s assets and liabilities:
Saxon Athletic Manufacturing, Inc.’s net assets at the acquisition date
€ in millions
Pre-
acquisition
carrying
amounts
Fair value
adjustments
Recognised
values on
acquisition
Accounts receivable 1 — 1
Inventories 1 — 1
Borrowings (1) — (1)
Other current liabilities (1) — (1)
Net assets 0 — 0
Goodwill arising on acquisition 2
Purchase price settled in cash 2
Cash and cash equivalents acquired —
Cash outfl ow on acquisition 2
Pre-acquisition carrying amounts were based on applicable IFRS standards.
The acquired subsidiary contributed € 0 million to the Group’s net income for the period from
February to December 2008.
Effective January 10, 2008, adidas AG acquired an additional 22.5% of the shares of its subsidiary
for the adidas brand in Greece, adidas Hellas A.E., Thessaloniki (Greece), for a purchase price in
the amount of € 6 million, thus taking its controlling stake to over 95%.
Effective April 1, 2008, adidas International B.V. acquired 99.99% of the shares of Reebok
Productos Esportivos Brasil Ltda. (formerly Comercial Vulcabras Ltda.) for a purchase price in
the amount of BRL 6 million. Based in Jundiai (Brazil), Reebok Productos Esportivos Brasil Ltda.
(formerly Comercial Vulcabras Ltda.) is a marketing company for Reebok products in Brazil.
The acquisition had the following effect on the Group’s assets and liabilities:
Reebok Productos Esportivos Brasil Ltda.’s net assets at the acquisition date
€ in millions
Pre-
acquisition
carrying
amounts
Fair value
adjustments
Recognised
values on
acquisition
Inventories 2 — 2
Other current assets 0 — 0
Net assets 2 — 2
Goodwill arising on acquisition —
Purchase price settled in cash 2
Cash and cash equivalents acquired —
Cash outfl ow on acquisition 2
Pre-acquisition carrying amounts were based on applicable IFRS standards.
If this acquisition had occurred on January 1, 2008, total Group net sales would have been
€ 10.8 billion and net income would have been € 641 million for the year ending December 31,
2008.
The acquired subsidiary contributed € 6 million to the Group’s net income for the period from
April to December 2008.