100 / 166
2017
R’000
2016
R’000
11.
ACQUISITION OF BUSINESSES, SUBSIDIARIES AND ASSOCIATE
(continued)
Net fair value of liabilities (assets) brought forward
328 897
(203 252)
Goodwill
(1 417 544)
(486 542)
Non-controlling interest
(53 626)
44 700
Total value of acquisitions
(1 142 273)
(645 094)
Less:
Cash and cash equivalents acquired
(26 353)
10 988
Net movements in vendors for acquisition and puttable non-controlling interest liabilities
(100 451)
(77 584)
Costs incurred in respect of acquisitions
(46 084)
(8 947)
Net amounts paid
(1 315 161)
(720 637)
Bidcorp acquired 90% of the issued share capital of Guzmán for an enterprise value of €75 million (R1,1 billion), the effective date of this
acquisition was April 1 2017. As part of the agreement to acquire shares in Guzmán, the group entered into a put agreement to acquire the
remaining shares in Guzmán at a contractually determined future date and value. A puttable non-controlling interest liability has been raised
in the statement of financial position (refer to note 27).
Other than the Guzmán acquisition, the group made a number of small acquisitions during the year, namely Bestfood NV (Belgium), BFS
Port Macquarie Proprietary Limited (Australia), Central Choices Foods Proprietary Limited (Australia), Hanlon’s Smokehouse Dublin Limited
(Ireland), Mariusso Comércio De Alimentos E Representação Limitada (Brazil), Quartiglia Food Service Spa (Italy), R Noone & Son Limited
(England), Wyn Lee Holdings Limited (England) and Wynne-Williams (Flint) Limited (England).
These acquisitions form part of the group’s strategic expansion plans in the international foodservice industry. Goodwill arose on the
acquisitions as the anticipated value of future cash flows that were taken into account in determining the purchase consideration exceeded
the net assets or net liabilities acquired at fair value. The acquisitions have enabled the group to expand its range of complementary
products and services and, as a consequence, has broadened the group’s base in the market place.
There were no significant contingent liabilities identified in the businesses acquired.
The impact of these acquisitions on the group’s results can be summarised as follows:
Guzmán
R’000
Other smaller
acquisitions
R’000
Total
R’000
Property, plant and equipment
80 619
184 326
264 945
Intangible assets
9 011
7 913
16 924
Deferred taxation
67 261
(10 595)
56 666
Interest in associates
89
–
89
Investments and advances
6 920
–
6 920
Inventories
52 613
74 171
126 784
Trade and other receivables
228 428
125 221
353 649
Cash and cash equivalents
(72 177)
45 824
(26 353)
Borrowings
(410 579)
(94 916)
(505 495)
Trade and other payables and provisions
(450 179)
(161 338)
(611 517)
Taxation
(5 247)
(6 262)
(11 509)
Total net identifiable (liabilities) assets
(493 241)
164 344
(328 897)
FINANCIAL OVERVIEW
Notes to the consolidated financial statements
for the year ended June 30
FINANCIAL STAT MENTS
Annual integrated report 2017
Bid Corporation Limited
96