NOTE 3
On 3 June 2011, Kesko signed an agreement with Intersport International Corporation and OOO Intersport CIS on the transfer of the Intersport licence in Russia to Kesko. Kesko established OOO Johaston, a subsidiary for Intersport operations in Russia, in which Kesko Corporation’s ownership interest is 80% and Melovest Ltd’s 20%. The acquisition of Intersport operations in Russia was concluded on 24 August 2011. By the end of 2011, 36 sports stores had transferred to OOO Johaston. The total price of acquisition was €21.8 million.
Over a four month period, OOO Johaston contributed net sales of €7 million and an operating loss of €6 million to the Kesko Group. The impact of OOO Johaston on the Group’s net sales and operating profit for the whole financial year cannot be reliably estimated, because the business component of OOO Johaston was composed only as a result of an acquisition.
Summary of consideration |
|
| € million | |
| Payable in cash | 21.8 |
| Fair value of net assets acquired | 21.8 |
Details of net assets acquired |
|
| € million | Fair value |
| Intangible rights | 7.2 |
| Property, plant and equipment | 11.4 |
| Inventories | 4.5 |
| Deferred tax (net) | -1.4 |
| Net assets acquired | 21.8 |
| Payable in cash | 21.8 |
| Outstanding price | 1.2 |
| Cash flow from acquisition | 20.7 |
In 2010, the Kesko Group did not have acquisitions to be accounted for as business combinations.