Note 6 Business combinations

2018

In 2018 Peab acquired 100 percent of the shares in Asfaltpartner i Väst Produktion AB (name changed to Peab Asfalt Väst AB). The company operates in Western Götaland, particularly in the  Gothenburg and Borås regions. During the year Peab also acquired Hoffmans Entreprenad AB (name changed to ATS Entreprenad AB) which does electrical power contract work in Norrbotten. Røstad Maskin 2 AS (name changed to Røstad Maskin AS), which works in civil engineering in Tromsö was also acquired.

The above acquisitions in 2018 individually do not have any material acquisition effect from a Group perspective and the information on acquisition effects is therefore given collectively.

In the period after acquisition the above subsidiaries contributed with SEK 91 million to Group revenue and SEK 2 million to profit in 2018. If the acquisitions had taken place on 1 January 2018, the combined effect of these acquisitions on Group revenue would have been SEK 134 million and on profit for the year by SEK 5 million.

Effects of acquisitions in 2018

The acquisitions’ preliminary effects on Group assets and liabilities are shown below. The acquisition analyses may be adjusted during a twelve month period.

Goodwill primarily consists of human resources and future synergy effects regarding common systems and shared resources which do not meet the criteria for recognition as intangible assets at the time of acquisition.

Total transferred compensation amounted to SEK 34 million.

During the year, the acquisition of assets also occurred through the acquisition of shares (asset acquisitions which are not business combinations) which resulted in a cash flow of SEK -45 million and primarily refer to project and development properties with development rights in Stockholm and Örebro.

Acquisitions after the balance sheet date

No substantial acquisitions have been made during 2019 as of the presentation of these financial reports.

2017

During 2017 Peab acquired 60 percent of the shares in AB Smidmek Eslöv. The company was consolidated 100 percent through the Anticipated acquisition method, since Peab had a put/call option for the acquisition of the rest of the shares. The company complements business area Industry’s existing offer regarding the manufacture of steel and concrete framework. During the year Tranab Markbyggnad AB, which has civil engineering operations in Mälardalen and Närke, was also acquired. Peab also acquired rock and concrete sealing operations in Gothenburg as well as the rest of the 66.6 percent of the shares in Telemark Vestfold Utvikling AS.

The above acquisitions in 2017 individually did not have any material acquisition effect from a Group perspective and the information on acquisition effects is therefore given collectively.

In the period after acquisition the above subsidiaries and businesses contributed SEK 275 million to Group revenue and SEK 14 million to profit in 2017. If the acquisitions had taken place on 1 January 2017, the combined effect of these acquisitions on Group revenue would have been SEK 648 million and on profit for the year by SEK 27 million.

In connection with the acquisition of the rest of the 66.6 percent of the shares in Telemark Vestfold Utvikling AS the existing holding was revalued to fair value. The effect of the revaluing amounted to SEK 26 million and was recognized as other operating income.

During the year, the acquisition of assets also occurred through the acquisition of shares (asset acquisitions which are not business combinations) which resulted in a cash flow of SEK -121 million and primarily refer to project and development properties with development rights in Kungsängen, Oslo and Västerås.