Food Lion 2009 Annual Report Download - page 101

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SUMMARY STATUTORY ACCOUNTS
OF DELHAIZE GROUP SA
HISTORICAL FINANCIAL OVERVIEW CERTIFICATION OF RESPONSIBLE
PERSONS
REPORT OF THE STATUTORY AUDITOR
SUPPLEMENTARY INFORMATION
Transaction costs are negligible and the total consideration transferred of EUR 7 million represents the total expected net cash outflow. The
provisional goodwill of EUR 9 million is attributed to location-related advantages, as it reinforces Alfa Beta’s position in the North-eastern part
of Greece, as well as to the acquisition of the customer base of the Koryfi stores.
From the date of acquisition, the acquired stores have contributed EUR 3 million to the 2009 revenues of the Group and - mainly due to the
conversion process - EUR - 1 million to the net profit of the year. If the combination had taken place at the beginning of the year, the 2009
revenues of the Group would have increased by approximately EUR 26 million.
Koryfi SA applied Greek Generally Accepted Accounting Principles (“Greek GAAP”) before the acquisition by the Group. Consequently, the car-
rying values of assets and liabilities just before the acquisition, as well as the estimated full year impact on Group’s consolidated results, have
not been disclosed here due to the fact that it would be impracticable to establish and / or estimate IFRS compliant amounts.
Acquisitions during 2008
Acquisition of P.L.L.C.
On February 14, 2008, Delhaize Group acquired 100% of the shares and voting rights of P.L.Logistics Center – Dianomes – Apothikefsis - Logistics
(P.L.L.C.) for an amount of EUR 12 million. This company owns mainly land and construction permits at Inofyta, Greece, where a new distribu-
tion center of fresh products is currently under construction. The fair value of the acquired land amounted to EUR 9 million and goodwill of
EUR 5 million has been recognized. P.L.L.C. has been included in the consolidated financial statements since February 14, 2008.
Acquisition of Plus Hellas
On April 1, 2008, Delhaize Group acquired, through its subsidiary Alfa Beta, 100% of the shares and voting rights of the Greek retailer “Plus
Hellas,” a fully-owned subsidiary of the Tengelmann Group. The initial acquisition price of EUR 70 million was subsequently adjusted to
EUR 65 million based on the terms of the agreement between the two parties. The Plus Hellas network consisted of 34 stores and a distribution
center, whereby 11 stores and the distribution center are owned. During 2008, five Plus Hellas stores have been closed and the remaining 29
have been converted to Alfa Beta banners.
The final acquisition date (April 1, 2008) fair values of the identifiable assets and liabilities of Plus Hellas can be summarized as follows:
(in millions of EUR) Acquisition Date Fair Value
Intangible assets 2
Property, plant and equipment 67
Other non-current assets 3
Inventories 8
Receivables and other assets 2
Cash and cash equivalents 1
83
Non-current liabilities (10)
Accounts payable (18)
Other current liabilities (4)
Net assets 51
Goodwill arising on acquisition 14
Total acquisition cost 65
The total acquisition costs comprised a cash payment and transaction costs of EUR 0.5 million, which were directly attributable to the acquisi-
tion.
(in millions of EUR) Cash outflow on acquisition
Cash paid (net of contractual adjustments and including transaction costs) 65
Net cash acquired with the subsidiary (1)
Net cash outflow 64
The recognized goodwill is attributed to the expected synergies, acquired customer base and other benefits from combining the assets and
retail activities of Plus Hellas with those of the Group.
From the date of acquisition, Plus Hellas has contributed EUR 36 million to the Group’s 2008 revenues and EUR - 6 million to the net profit of the
year. If the combination had taken place at the beginning of the year, the 2008 revenues of the Group would have increased by approximately
EUR 24 million.
Plus Hellas applied “Greek GAAP” before the acquisition by the Group. Consequently, the carrying values of assets and liabilities just before
the acquisition, as well as the estimated full year impact on the Group’s consolidated results, have not been disclosed here due to the fact that
it would be impracticable to establish and / or estimate IFRS compliant amounts.