Note 5 Business combinations
2022
December 20, 2022 Peab acquired 90.4 percent of the shares in the civil engineering company Arne Olav Lund A/S based in Larvik. The company works throughout eastern Norway with production and improvement of roads, water and waste water as well as with groundwork and landscaping.
July 1, 2022 Peab also acquired 100 percent of the shares in Asfaltti-System Oy. Asfaltti-System Oy is a company in Kouvola in southern Finland that works with manufacturing components and maintenance in the asphalt and concrete industry.
The above acquisitions in 2022 individually had no material acquisition effects from the Group’s perspective and information on acquisition effects is given collectively.
In the period after the acquisitions the above subsidiaries and operations contributed by SEK 7 million to Group revenue and SEK -1 million to Group profit/loss in 2022. If the acquisitions had occurred on January 1, 2022, the combined effect of these acquisitions on Group revenue would have been SEK 410 million and SEK 13 million on Group profit/loss.
Effects of acquisitions in 2022
The acquisitions’ effects on Group assets and liabilities are shown below. 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 170 million.
During the year assets have also been acquired through share acquisitions (asset acquisitions that are not business combinations) which resulted in a cash flow of SEK -408 million and primarily refer to project and development properties with development rights in Sweden and Norway.
The acquired companies’ net assets at the time of acquisition:
| MSEK | 2022 | 2021 | |
| Mkr | 2022 | 2021 | |
| Intangible assets | Immateriella anläggningstillgångar | 20 | 59 |
| Tangible assets | Materiella anläggningstillgångar | 137 | 189 |
| Project and development properties and inventories | Projekt- och exploateringsfastigheter samt varulager | 5 | 39 |
| Accounts receivable and other receivables | Kundfordringar och övriga rörelsefordringar | 94 | 62 |
| Liquid funds | Likvida medel | 19 | 28 |
| Interest-bearing liabilities | Räntebärande skulder | -21 | -36 |
| Interest-bearing liabilities (leasing) | Räntebärande skulder (leasing) | -67 | -55 |
| Deferred tax liabilities | Uppskjutna skatteskulder | -30 | -29 |
| Provisions | Avsättningar | -4 | -5 |
| Accounts payable and other current liabilities | Leverantörsskulder och övriga rörelseskulder | -52 | -41 |
| Net identifiable assets and liabilities | Netto identifierbara tillgångar och skulder | 101 | 211 |
| Non-controlling interests | Innehav utan bestämmande inflytande | -8 | – |
| Group goodwill | Koncerngoodwill | 77 | 28 |
| Consideration transferred | Överförd ersättning | 170 | 239 |
Settled consideration
| MSEK | 2022 | 2021 | |
| Mkr | 2022 | 2021 | |
| Liquid funds | Likvida medel | 151 | 230 |
| Contingent consideration | Villkorad köpeskilling | 19 | – |
| Option liabilities/Promissory note | Optionsskuld/säljarrevers | – | 9 |
| Total settled consideration | Totalt reglerad ersättning | 170 | 239 |
Acquisitions after the balance sheet date
No substantial acquisitions have been made during 2023 as of the presentation of these financial reports.
2021
September 1, 2021 Peab acquired 90 percent of the shares in HGT AS. HGT is a general contractor in civil engineering and is domiciled in Bergen. The company has been 100 percent consolidated through application of the anticipated acquisition method since there is a put/call option for the acquisition of the rest of the shares.
July 1, 2021 Peab also acquired 100 percent of the shares in Frøseth AS. Frøseth operates in mineral aggregates, paving, transportation and recycling in the Trøndelag area in the middle of Norway. During the year the assets and liabilities of Snells Entreprenad AB, which has concrete and mineral aggregates operations in the Luleå area, were acquired.
The above acquisitions in 2021 individually had no material acquisition effects from the Group’s perspective and information on acquisition effects is given collectively.
In the period after the acquisitions the above subsidiaries and operations contributed by SEK 155 million to Group revenue and SEK -5 million to Group profit/loss in 2021. If the acquisitions had occurred on January 1, 2021, the combined effect of these acquisitions on Group revenue would have been SEK 276 million and SEK -9 million on Group profit/loss.
Total transferred compensation amounted to SEK 239 million.
During the year assets have also been acquired through share acquisitions (asset acquisitions that are not business combinations) which resulted in a cash flow of SEK -240 million and primarily refer to project and development properties with development rights in Sweden and Norway.