Note 24 Acquired/divested operations

Divested operations in 2019

Acare Medical Science Co.,Ltd

In February, Acare Medical Sciences Co., Ltd – the Group’s low-spec medical beds business – was divested to CBL based in China. The divestment involves a production and sales unit in Zhuhai, China, with 186 employees and sales of about SEK 80 M. Acare was recognized in the balance sheet for 2018 under assets and liabilities held for sale. The divestment did not have any significant capital gains effect. The sales proceeds of about SEK 24 M were received via a promissory note, of which SEK 11 M falls due for payment in the third quarter. Cash and cash equivalents in Acare on the divestment date amounted to SEK 5 M.

Divested net assets, SEK M Carrying amount
Avyttrade nettotillgångar, Mkr Bokfört värde
Net assets Nettotillgångar 70
Assets held for sale Tillgångar som innehas för försäljning -46
Liabilities held for sale Skulder som innehas för försäljning 24
Total net assets Totala nettotillgångar
Cash-flow effect Kassaflödeseffekt
Proceeds received Erhållen likvid 11
Cash and cash equivalents Likvida medel i sålt bolag -5
in divested company Summa kassaflödeseffekt 6
Total cash-flow effect

Acquired operations 2018

ReNu Medical Inc.

All of the shares in the US company ReNu Medical Inc. were acquired in July. The company is a specialized green medical reprocessor of single use medical devices.

Its annual sales amount to approximately SEK 60 M, of which about SEK 40 M comprises sales to Arjo. The number of employees on the acquisition date was 87.

The acquisition analysis is preliminary for the period until one year after the acquisition date.

Acquisition-related costs amounted to SEK 3 M.

If the acquisition had taken place on January 1, 2018, the Group’s sales would have increased by approximately SEK 13 M and made a positive contribution to earnings.

Net assets acquired‚ SEK M Carrying amount Value adjustment Fair value
Förvärvade nettotillgångar‚ Mkr Bokfört värde Värdejustering Verkligt värde
Net assets Nettotillgångar
Intangible assets Immateriella tillgångar – 12 12
Tangible assets Materiella anläggningstillgångar – 3 3
Inventories, accounts receivables and other receivables Lager, kund- och övriga fordringar 7 1 8
Accounts payable and other liabilities Leverantörs- och övriga skulder -1 -10 -11
Cash and bank balances Kassa och bank 12 – 12
Total net assets Summa nettotillgångar 18 6 24
Goodwill Goodwill – 192 192
Total net assets Totala nettotillgångar 18 198 216
Cash-flow effect Kassaflödeseffekt
Acquisition price Förvärvspris 216
Unpaid purchase considerations Ej utbetald köpeskilling -60
Cash and cash equivalents in the acquired company Likvida medel i förvärvad verksamet -12
Total cash-flow effect Summa kassaflödeseffekt 144