NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CON1 IN
HEINEKEN N.V. ANNUAL REPORT 20( 8
6. Acquisitions and disposals of subsidiaries and minority interests
Effect of Eichhof acquisition
The Eichhof acquisition had the following effect on Heineken's assets and liabilities on acquisition date:
In millions of EUR
Note
Pre-
acquisition Fair
carrying value
amounts adjustments
Recognised
values on
acquisition
date
Property, plant equipment
14
37
16
53
Intangible assets
15
2
36
38
Other investments
20
-
20
Inventories
14
1
15
Trade and other receivables, prepayments and accrued income
20
-
20
Cash and cash equivalents
2
-
2
Employee benefits
-
(19)
(19)
Deferred tax liabilities
18
(7)
(3)
(10)
Provisions
28
-
(3)
(3)
Current liabilities
(42)
(1)
(43)
Net identifiable assets and liabilities
46
27
73
Goodwill on acquisition
15
119
Consideration paid
192
Net cash and cash equivalents acquired
(2)
Net cash outflow
190
The Eichhof acquired entities have been fully integrated in Heineken Switzerland. Goodwill on the acquisition
of Eichhof has been allocated to the Western European region for the purpose of impairment testing in line
with the operational responsibility. Goodwill in Western Europe is monitored on a regional level. Synergies
in the Western European market are expected to be achieved as result of a stronger presence in Western
Europe enabling Heineken to secure its position and to grow its market share through appropriate commercial
investments. Cost synergies are expected through more efficient central purchasing, sourcing and selling in
respect of both the Eichhof and Heineken brands.
The fair values of assets and liabilities acquired have been determined on a provisional basis and will be
completed in 2009.
The contribution to revenue amounted to €44 million and to results from operating activities -€7 million, due
to significant restructuring costs. If the acquisition had occurred on 1 January 2008, management estimates
that revenue would have been €86 million higher and results from operating activities would have been
€16 million higher.
This pro forma information does not purport to represent what our actual results would have been had
the acquisition actually occurred on 1 January 2008, nor are they necessarily indicative of future results
of operations. In determining the contributions, management has assumed that the fair value adjustments
that arose on the date of the acquisitions would have been the same if the acquisitions had occurred on
1 January 2008.
Effect of other acquisitions and disposals
In addition to the acquisition of S&N and Eichhof, other acquisitions and disposals occurred during 2008.
Breweries in Serbia, Romania, Belarus, Czech Republic, Sierra Leone and Algeria, and a soft drinks company
in Tunisia were acquired. The following acquisition dates and percentages of voting rights apply to these
other acquisitions:
