Saab 2014 Annual Report Download - page 93

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FINANCIAL INFORMATION – NOTES
NOTE 8 BUSINESS COMBINATIONS
On 29 June 2014, Saab announced an agreement to acquire 100 per cent of
ThyssenKrupp Marine Systems AB (now Saab Kockums), which designs, builds
and maintains military naval systems such as submarines and surface vessels.
Saab Kockums had approximately 850 employees at the time of the acquisition.
The acquisition was completed on 22 July 2014 for a purchase price of MSEK 340.
The acquisition is in line with Saab’s ambition to increase its capabilities in the
naval domain, and further strengthens Saab’s status as a comprehensive supplier
of military systems. Saab Kockums has a unique offering and strong presence in
Sweden concerning submarines and warships. Saab also sees potential to expand
Saab Kockums’ current market position through opportunities in the export market.
Purchase Analysis
MSEK
Purchase price
Purchase price paid 22 July 2014 340
Total consideration 340
Effect on liquid assets
Purchase price paid 22 July 2014 340
Less: Liquid assets in the acquired company -540
Effect on liquid assets (positive (-) / negative (+)) -200
Fair value of identifiable assets and liabilities
at the date of the acquisition was:
Intangible fixed assets 41
Tangible fixed assets 157
Financial fixed assets 12
Deferred tax assets 281
Current assets 407
Liquid assets 540
Total assets 1,438
Provisions for pensions 186
Other provisions 601
Other liabilities 529
Total liabilities 1,316
Total identifiable net assets at fair value 112
Goodwill 218
Purchase consideration 340
Goodwill related to the acquisition amounts to MSEK 218, and comprises the value
of the assembled workforce and expected synergy effects achieved by merging
Saab Group’s and Saab Kockums’ operations. No part of acquired goodwill is
expected to be deductible for income tax purposes.
As of the acquisition date, Saab Kockums has contributed MSEK 612 to Group
sales and MSEK 138 to income before tax. Saab Kockums’ total sales in 2014
amounts to MSEK 1,248 and income before tax to MSEK 88.
Transaction costs of MSEK 5 have been expensed and are included in adminis-
trative expenses. These costs are included in cash flow from operating activities in
the statement of cash flows.
No other significant acquisitions were made or announced during 2014.
SAAB ANNUAL REPORT 2014 – 89