Unilever 2002 Annual Report Download - page 103

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100 Notes to the consolidated accounts
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2002
25 Acquisition and disposal of group companies continued
million million million
2002 2001 2000
Acquisitions
Net assets acquired 37 49 3 910
Adjustments to acquisitions made in 2000 –5 546 –
Goodwill arising in subsidiaries 116 (5 407) 26 019
Goodwill arising in joint ventures –(51) 632
Consideration 153 137 30 561
Of which:
Cash 27 57 132 27 777
Cash balances of businesses acquired –1231
Current investments, cash deposits and borrowings of businesses acquired 77 13 100
Non-cash items and deferred consideration (57) 3(547)
Fair value of Unilever business contributed 76 ––
Disposals
The results of disposed businesses are included in the consolidated accounts up to their date of disposal. In 2001, disposed businesses
principally comprised Unipath and Batchelors/Oxo in the United Kingdom, Royco in the Netherlands and Elizabeth Arden and Gortons
in the USA.
Included in the following table is the disposal of the DiverseyLever business. On 3 May 2002, Unilever disposed of its DiverseyLever business
to JohnsonDiversey Inc. in exchange for cash, loan notes and a 33.3% stake in JohnsonDiversey’s parent, JohnsonDiversey Holdings Inc.
The net consideration received, including our share of the net debt of JohnsonDiversey Holdings Inc. group was 1 053 million. Johnson
Professional Holdings Inc. also contributed its own professional cleaning business to JohnsonDiversey Inc.
This transaction has been accounted for in accordance with UITF 31. The net effect of this transaction was to dispose of a 66.6% interest in
DiverseyLever and to acquire a 33.3% interest in Johnson Professional’s professional cleaning business.
Unilever’s acquired share of net assets of the Johnson professional cleaning business has been recorded at fair value, with the difference
between this and the fair value of the consideration given in return being recorded as goodwill. The goodwill arising of 178 million is
being amortised over 20 years. Unilever retained an interest in DiverseyLever which is included at its pre-transaction carrying amount.
To the extent that the fair value of the consideration received by Unilever exceeds the book value of the DiverseyLever business disposed,
Unilever has recognised a gain of 98 million, after taking into account certain provisions recorded in respect of the disposal. Unilever’s
33.3% interest in JohnsonDiversey Holdings Inc. is accounted for by Unilever as an associated undertaking.