Explanations for business combinations
Initial consolidation of Pro à Pro
In accordance with the purchase agreement dated 7 July 2016, METRO Cash & Carry International Holding B.V. acquired 100% of Pro à Pro shares from ETS FR Colruyt SA, Belgium, as of 1 February 2017. The group consists of 11 individual companies grouped under COLRUYT France SAS, France. The purchase price amounted to a low to medium 3-digit million euros amount and was paid in cash. Pro à Pro is an important food delivery service in France. The group specialises in the supply of large-scale food service companies, such as canteens. The acquisition of Pro à Pro will assist METRO in further advancing its food service distribution business. The initial consolidation was carried out in the second quarter of 2016/17. Pro à Pro is part of the METRO Wholesale segment.
The fair values of the acquired assets and liabilities of the consolidated group at the acquisition date consist of the following:
XLS
€ million |
|
|
Assets |
|
|
Other intangible assets |
|
41 |
Property, plant and equipment |
|
61 |
Deferred tax assets |
|
9 |
Inventories |
|
53 |
Trade receivables |
|
105 |
Other financial and non-financial assets (current) |
|
22 |
Cash and cash equivalents |
|
70 |
|
|
361 |
Liabilities |
|
|
Provisions for post-employment benefits plans and similar obligations |
|
5 |
Other provisions |
|
4 |
Financial liabilities (non-current) |
|
1 |
Deferred tax liabilities |
|
17 |
Trade liabilities |
|
99 |
Financial liabilities (current) |
|
1 |
Other financial and non-financial liabilities (current) |
|
16 |
|
|
143 |
The trade receivables included in the above assets are equal to the contractually agreed amounts and are considered fully collectable.
The initial consolidation of Pro à Pro is provisional with respect to the determination of the final purchase price and the valuation of the assets and liabilities in the opening balance sheet.
The acquisition of Pro à Pro results in goodwill of €34 million, mainly due to future earnings potential resulting from anticipated synergy effects between Pro à Pro and METRO's French wholesale organisation.
From the point of initial consolidation on 1 February 2017, Pro à Pro contributed €489 million (€473 million thereof with non-group third parties) and €6 million to profit or loss for the period (net profit or loss). Pro à Pro currently employs 1,826 people.
Assuming that the acquisition had taken place on 1 October 2016, Pro à Pro would have contributed €712 million to METRO's revenue and €9 million to profit or loss for the period.