4 Acquisitions

2014

The company made no acquisitions in 2014.

2013

The company acquired the city of Tampere’s asphalt paving business on 2 January 2013. The goodwill recognised from the acquisition comprises of a strengthening the market position in the Pirkanmaa area.

The company acquired the entire share capital of Biomaa Oy on 2 January 2013. Biomaa Oy specialises in mass stabilisation and the treatment of contaminated soil. The goodwill recognised from the acquisition comprises of special expertise in contaminated soil treatment. The acquisition includes a contingent consideration. Biomaa Oy was merged to Lemminkäinen Infra Oy on 1 May 2013.

The company acquired on 2 January 2013, with a single deed, the entire share capitals of three companies: Maanrakennus Katupojat Oy, Bergqvist Oy and Kuljetus Oy Wilkman. The acquirees engage in earthwork contracting, regional development, energy network construction and transport as well as the winter and summer maintenance of roads in Southern Finland. A negative goodwill of EUR 0.1 million was recognised from the acquisition. The acquired companies were merged to Lemminkäinen Infra Oy on 1 May 2013.

The company acquired 80 per cent of the share capital in a Danish company FD-Entreprise ApS on 2 May 2013. FD-Entreprise specialises in the milling of asphalt and concrete road surfaces and operates primarily in eastern Denmark. The goodwill recognised from the acquisition comprises of expanding the company's market area. The acquisition doubles Lemminkäinen's market share in road milling in Denmark and expands the company's market area to cover the entire country. The acquisition involves an option to redeem shares from non-controlling shareholders which is recognised as a liability in the balance sheet.

The company acquired 75 per cent of the share capital in Swedish Landvetterkrossen AB (former Vest Kross AB) on 12 July 2013. Landvetterkrossen AB is a supplier of mineral aggregates. The acquisition involves an option to redeem shares from non-controlling shareholders which has not been recognised as a liability in the balance sheet.

The company acquired the entire share capital in LEC Consultancy JLT on 24 July 2013. The company is domiciled in the United Arab Emirates. The goodwill recognised from the acquisition comprises of special expertise of the company's personnel.

Fair values recognised in consolidation of the businesses acquired in 2013 are presented in the table below.


EUR 1,000 Fair values recognised in consolidation 2013
Assets

Property, plant and equipment 9,081

Intangible assets 2,867

Available-for-sale financial assets 559

Inventories 885

Current receivables 5,394

Cash and cash equivalents 2,252
Assets, total 21,038


Liabilities

Deferred tax liabilities 153

Interest-bearing liabilities 5,860

Other liabilities 5,304
Liabilities, total 11,317




Non-controlling interests -16


Net assets 9,737

Consideration paid in cash 10,116
Consideration recognised as liability 4,873
Total consideration 14,989



Goodwill 5,252

Goodwill recognised in balance sheet 5,396

Negative goodwill recognised during the accounting period -144

Consideration paid in cash -8,384
Cash of acquired subsidiaries 2,247
Impact on cash flow -6,137

Acquisition-related costs recorded in other operating expenses 287


On the consolidation of the acquired business operations, EUR 13.8 million was recognised in net sales and EUR 0.2 million in operating profit of 2013. Full-year net sales of the acquired business operations in 2013 amounted to EUR 15.1 million and operating profit to EUR -0.5 million. If the acquirees had been consolidated as from the beginning of 2013, consolidated net sales would have been EUR 2,219.5 million and operating profit EUR -91.5 million.

 
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