Unilever 2009 Annual Report Download - page 45

Financial Review 2009 (continued)
42 Unilever Annual Report and Accounts 2009
Report of the Directors About Unilever
Acquisitions and disposals
2009
On 2 April 2009 we announced the completion of our purchase
of the global TIGI professional hair product business and its
supporting advanced education academies. TIGI’s major brands
include Bed Head, Catwalk and S-Factor. Turnover of the business
worldwide in 2008 was around US $250 million. The cash
consideration of US $411.5 million was made on a cash and debt-
free basis. In addition, further limited payments related to future
growth may be made contingent upon meeting certain thresholds.
On 23 June 2009 we announced that we had increased our
holding in our business in Vietnam to 100%, following an
agreement with Vinachem who previously owned 33.3% of
the business.
On 3 July 2009 we completed the acquisition of Baltimor Holding
ZAO’s sauces business in Russia. The acquisition includes ketchup,
mayonnaise and tomato paste business under the Baltimor, Pomo
d’Oro and Vostochniy Gourmand brands – accounting for turnover
of around €70 million in 2008 – and a production facility at
Kolpino, near St Petersburg.
On 3 September 2009 we announced the sale of our oil palm
plantation business in the Democratic Republic of Congo to
Feronia Inc, for an undisclosed sum.
On 25 September 2009 we announced a binding offer to acquire
the personal care business of the Sara Lee Corporation for €1.275
billion in cash. The Sara Lee brands involved, including Sanex,
Radox and Duschdas, generated annual sales in excess of €750
million in the year ending June 2009. The transaction is subject to
regulatory approval and consultation with European Works
Councils, and is expected to be completed by the third quarter
of 2010.
On 24 November 2009 we completed the sale of our interest
in JohnsonDiversey. The cash consideration received was
US $390 million, which included both the originally announced
cash consideration of US $158 million plus the proceeds of the
sale of the 10.5% senior notes in JohnsonDiversey Holdings, Inc.
We retain a 4% interest in JohnsonDiversey in the form of
warrants. See also note 11 on page 97.
2008
With effect from 1 January 2008, we entered into an expanded
international partnership with PepsiCo for the marketing and
distribution of ready-to-drink tea products under the Lipton brand.
On 3 January 2008 we completed the sale of the Boursin brand to
Le Groupe Bel for €400 million. The turnover of this brand in 2007
was approximately €100 million.
On 2 April 2008 we completed the acquisition of Inmarko,
the leading Russian ice cream company. The company had a
turnover in 2007 of approximately €115 million.
On 31 July 2008 we completed the sale of our Lawry’s and
Adolph’s branded seasoning blends and marinades business in
the US and Canada to McCormick & Company, Incorporated for
€410 million. The combined annual turnover of the business in
2007 was approximately €100 million.
On 9 September 2008 we completed the sale of our North
American laundry business in the US, Canada and Puerto Rico
to Vestar Capital Partners, a leading global private equity firm, for
consideration of approximately US $1.45 billion, consisting mainly
of cash along with preferred shares and warrants. These
businesses had a combined turnover in 2007 of approximately
US $1.0 billion.
On 5 November 2008 we completed the sale of Komili, our olive
oil brand in Turkey, to Ana Gida, part of the Anadolu Group.
On 4 December 2008 we completed the sale of our edible oil
business in Côte d’Ivoire, together with interests in local oil palm
plantations Palmci and PHCI, to SIFCA, the parent company of an
Ivorian agro-industry group, and to a 50:50 joint venture between
two Singapore-based companies, Wilmar International Limited and
Olam International Limited. At the same time we acquired the
soap business of Cosmivoire, a subsidiary of SIFCA.
On 23 December 2008 we completed the disposal of our Bertolli
olive oil and vinegar business to Grupo SOS for a consideration of
€630 million. The transaction was structured as a worldwide
perpetual licence by Unilever of the Bertolli brand in respect of
olive oil and premium vinegar. The transaction included the sale of
the Italian Maya, Dante and San Giorgio olive oil and seed oil
businesses, as well as the factory at Inveruno, Italy.
Significant events after the balance sheet date
As agreed at the AGMs and at meetings of ordinary shareholders
in May 2009 Unilever has with effect from 1 January 2010 moved
to an arrangement of paying quarterly dividends. The first
quarterly interim dividends of €0.1950 per NV ordinary share and
£0.1704 per PLC ordinary share were declared on 4 February
2010.
Critical accounting policies
The accounts presented comply in all material respects with IFRS as
adopted by the EU and with UK and Dutch law. They are also in
accordance with IFRS as issued by the International Accounting
Standards Board. To prepare these accounts, we are required to
make estimates and assumptions, using judgement based on
available information, including historical experience. We believe
these estimates and assumptions are reasonable and we
re-evaluate them on an ongoing basis. However, actual amounts
and results could differ. Critical accounting policies are those
which are most important to the portrayal of Unilever’s financial
position and results of operations. Some of these policies require
difficult, subjective or complex judgements from management.
The most important are set out below.