Unilever 2010 Annual Report Download - page 120

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Unilever Annual Report and Accounts 2010 117
Financial statements
26 Acquisitions and disposals
Sara Lee’s Personal Care business
On 6 December 2010 we completed the purchase of 100% of Sara Lee’s Personal Care business. This acquisition adds brands including Radox,
Duschdas and Neutral to Unilever’s existing portfolio.
The consideration was €1,456 million in cash. The fair values shown below are provisional and are based upon the fair value work that has
beenperformed since the acquisition date. The acquisition accounting will be finalised in 2011.
The intangible assets of the Personal Care business are principally brands. Their fair values have been provisionally determined pending the
completion of valuations in 2011.
The provisional estimate of the goodwill arising on the acquisition of the Personal Care business is €251 million. It relates tothe value of the
anticipated synergies to be realised from the acquisition, together with the market position and the assembled workforce.
The following table summarises the consideration paid and assets and liabilities recognised at the acquisition date for the Group’s acquisition
ofthe Personal Care business.
Intangible assets
€ million
256
Property, plant and equipment 64
Other non-current assets
Total non-current assets
5
325
Inventories 53
Trade and other current receivables 96
Current tax assets 2
Cash and cash equivalents 306
Assets held for sale
Total current assets
657
1,114
Financial liabilities (7)
Trade payables and other current liabilities (112)
Current tax liabilities (19)
Liabilities associated with assets held for sale
Total current liabilities
(57)
(195)
Pensions and post-retirement healthcare liabilities (11)
Deferred tax liabilities (24)
Other non-current liabilities
Total non-current liabilities
Total identifiable net assets
Consideration – cash
Goodwill on acquisition
(4)
(39)
1,205
1,456
251
Acquisition-related costs of €12 million are included in administrative expenses in the income statement for the year ended 31December 2010.
These acquisition-related costs are presented within RDI in calculating underlying operating profit.
Since acquisition, the Personal Care business has contributed €43 million to Group revenue and €8 million to Group operating profit. If the
personal care business acquisition had taken place at the beginning of the year, Group revenue would have been €754 million and Group
operating profit would have been €118 million.