Note 11


		2017 R'000	2016 R'000
11.	ACQUISITION OF BUSINESSES, SUBSIDIARIES AND ASSOCIATE
	Property, plant and equipment	(264 945)	(228 880)
	Intangible assets	(16 924)	(800)
	Deferred taxation	(56 666)	(5 695)
	Interest in associates	(89)	(5 726)
	Investments and advances	(6 920)	–
	Inventories	(126 784)	(67 837)
	Trade and other receivables	(353 649)	(185 102)
	Cash and cash equivalents	26 353	(10 988)
	Borrowings	505 495	108 663
	Trade and other payables and provisions	611 517	183 773
	Taxation	11 509	9 340
	Net fair value of liabilities (assets)	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)
Contribution to results for the year
Revenue	378 493	1 732 206	2 110 699
Trading profit	25 756	43 751	69 507
Contributions to results for the year if the acquisitions had been effective on July 1 2016
Revenue	1 376 536	2 234 280	3 610 816
Trading profit	67 689	71 872	139 561