Loreal 2011 Annual Report Download - page 103

101REGISTRATION DOCUMENT − L’ORÉAL 2011
2011 Consolidated Financial Statements
4
Notes to the consolidated  nancial statements
A price of SEK79.00 in cash was offered for each share, with the
exception of shares owned by Q-Med founder Bengt Agerup,
who sold his 47.5% stake at a price of SEK58.94 per share. An
earn-out clause stipulates that the total price can under no
circumstances exceed SEK74.96 per share.
On March15th, 2011, Galderma declared the offer wholly
unconditional and acquired 95,361,096 shares, representing
95.95% of the existing issued share capital of Q-Med. Galderma
decided to request compulsory acquisition of the remaining
shares in Q-Med shares, which was obtained on November15th,
2011.
Q-Med is proportionally consolidated as from March1st, 2011.
On December15th, 2011, L’Oréal announced the completed
acquisition of Pacific Bioscience Laboratories Inc., the market
leader in the rapidly growing area of sonic skin care devices.
The move gives L’Oréal access to patented sonic skin care
technology enabling the Company to acquire strategic
positions in the booming skin care devices category.
Clarisonic® is sold mainly throughout the US and is also
present in the UK, Australia, Mexico, Canada and the Far
East. It is sold through a distribution network which includes
dermatologists and cosmetic surgeons, spas, prestige retail,
e-tail, television shopping and clarisonic.com. In full-year 2010,
Clarisonic® delivered net sales of $105million. It has been fully
consolidated since December15th, 2011.
The cost of these new acquisitions was €813.5million. The total
amount of goodwill and other intangible assets resulting from
the acquisitions was provisionally estimated at €415.6million
and €320.8million, respectively.
These acquisitions represent around €193million in sales and
€33million in operating profit in2011.
2.2. 2010
On April21st, 2010, L’Oréal USA signed an agreement to acquire
the assets of Essie Cosmetics, the ultimate nail colour authority in
the US, sold mainly in American salons and spas. The acquisition
was completed on June25th, 2010 and the c ompany has been
fully consolidated since June30th, 2010. Essie’s net sales were
$25million in2009.
On June1st, 2010, L’Oréal USA acquired 100% of the capital of
C.B. Sullivan, a New Hampshire-based company. C.B. Sullivan
supplies hair salons in six states across the north-eastern United
States (Vermont, New Hampshire, Maine, Connecticut, Rhode
Island and Massachusetts), with a network of representatives
and professional-only outlets. The c ompany’s net sales in fiscal
year 2009 were approximately $50million. The acquisition was
fully consolidated as of June1st, 2010.
On December10th, 2010, L’Oréal USA acquired the professional
distribution business of Peel’s Salon Services, a Nebraska-
based company. Peel’s Salon Services supplies hair salons in
12 states across the mid-US, with a network of representatives
and professional-only outlets. The c ompany’s net sales
are approximately $100million. This acquisition was fully
consolidated as of December11th, 2010.
The cost of these new acquisitions amounts to approximately
€204.1million. The total amount of goodwill and other intangible
assets resulting from the acquisitions was estimated after
the final purchase price allocation at €119.9million and
€68.6million, respectively.
These acquisitions represent around $170million in full-year
sales and $7.2million in full-year operating profit for 2010. They
would have contributed $130million in additional net sales for
the Group over the 12months of 2010.
2.3. 2009
On April9th, 2009, L’Oréal USA signed an agreement for the
acquisition of Idaho Barber and Beauty Supply (IBB), a distributor
of professional products to hair salons in several states in the
North West of the United States, particularly Idaho, Montana
and Washington. Idaho Barber and Beauty Supply are fully
consolidated from June1st, 2009.
On December31st, 2009, L’OréalUSA acquired Maly’s Midwest
and Marshall Salon Services, distributors of professional
products to hair salons across 8 states in the US Midwest region.
Maly’s Midwest and Marshall Salon Services have been fully
consolidated since December31st, 2009.
These acquisitions represent around $150million in full-year
sales and $8million in full-year operating profit for 2009. They
would have contributed $93.5million in additional net sales for
the Group over the 12months of 2009.
The cost of these acquisitions amounts to approximately
€60.8million. The total amount of goodwill and other intangible
assets resulting from these acquisitions after the final purchase
price allocation is €26.9million and €20.4million, respectively.