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Unilever Annual Report and Accounts 2006 113
Financial Statements (continued)
Notes to the consolidated accounts Unilever Group
26 Acquisitions and disposals
Acquisitions
During 2006 we purchased minority interests in subsidiary companies in Greece and Algeria, trademarks in Czech Republic, distribution in
Tunisia and Vashisti business in India. Also an additional investment into Langholm Capital Partners Fund was made and classified as an
acquisition of associates (see note 11 on page 92).
The following table sets out the effect of acquisitions of group companies in 2006, 2005 and 2004 on the consolidated balance sheet. The fair
values currently established for all acquisitions made in 2006 are provisional. The goodwill arising on these transactions has been capitalised
and is subject to an annual review for impairment (or more frequently if necessary) in accordance with our accounting policies as set out in
note 1 on page 74. Any impairment is charged to the income statement as it arises. Detailed information relating to goodwill is given in note 9
on pages 88 and 89.
€million €million € million
Acquisitions 2006 2005 2004
Net assets acquired 42 733
Goodwill arising in subsidiaries 60 13 7
Consideration 102 20 40
Consideration consisted wholly of cash.
Disposals
The results of disposed businesses are included in the consolidated accounts up to their date of disposal.
On 3 November 2006, Unilever announced that it had reached a final agreement with Permira Funds to sell the majority of its European frozen
foods business for €1.7 billion. The Unilever businesses being sold in this transaction include the frozen foods operations in Austria, Belgium,
France, Germany,Ireland, Netherlands, Portugal and United Kingdom.
Other disposals in 2006 were Mora in the Netherlands and Belgium, Finesse in the US, Canada and Sweden, Friol in Italy and Nihar and
tea plantations in India.
The principal disposals in 2005 wereUCI across the world, Stanton Oil in UK and Ireland, Dextro in various countries in Europe, Opal in Peru,
Karoand Knax in Mexico, spreads and cooking products in Australia and in New Zealand, Crispa, Mentadent, Marmite, Bovril and Maizena in
South Africa, frozen pizza in Austria, Biopon in Hungary and tea plantations in India.
In March 2005 Unilever completed the restructuring of its Portuguese foods business. Beforethe restructuring Unilever Portugal held an interest
in FIMA/VG – Distribuição de Produtos Alimentares, Lda. (FIMA) foods business, a joint venture with Jerónimo Martins Group, in addition to its
wholly owned Bestfoods business acquired in 2000. As a result of the transaction the two foods businesses – FIMA and Unilever Bestfoods
Portugal – wereunified and the joint venture stakes were re-balanced so that Unilever hold 49% of the combined foods business and Jerónimo
Martins Group 51%. During the year,Unilever signed an agreement with Jerónimo Martins to restructure the ownership of the Portuguese
operations effective 1 January 2007. Further information is provided in note 33 on page 123.
In 2004, the principal disposals were Puget oils in France, the frozen pizza and baguette businesses in various countries in Europe, Rit, Niagara,
Final Touch and Sunlight in North America, Capullo, Mazola and Inca in Chile and Mexico and Dalda oils in Pakistan. Our chemicals business
in India (Hindustan Lever Chemicals) was merged with Tata Chemicals. Various other smaller brands were also sold as part of our Path to
Growth strategy.
€million €million € million
Disposals 2006 2005 2004
Goodwill and intangible assets 1150 23
Other non-current assets 242 78 52
Current assets 354 207 145
Trade creditors and other payables (157) (106) (34)
Provisions for liabilities and charges (91) (15) (9)
Minority interest –(1) (25)
Net assets sold 349 313 152
(Gain)/loss on recycling of currency retranslation on disposal –(5) 2
Profit on sale attributable to Unilever 1528 655 338
Consideration 1877 963 492
Cash 1870 845 417
Cash balances of businesses sold –(17) (4)
Financial assets, cash deposits and borrowings of businesses sold (5) 839
Non-cash items and deferred consideration 12 26 40
Payment received in prior year –101 –