On December 12, 2012 Fiskars signed a definitive agreement to acquire 100% of the shares in Royal Copenhagen A/S and Royal Scandinavian Modern KK Japan from Royal Scandinavia A/S, whose controlling parent company is the Danish private equity group, Axcel. The acquisition date was January 4, 2013. The total consideration payable (debt-free enterprise value) for the shares was DKK 490 million, equaling approximately EUR 66 million, less net debt and working capital adjustments as per closing of the transaction. The transaction was financed using Fiskars’ existing credit programs.
The acquisition enables Fiskars to consolidate a unique portfolio of leading Scandinavian dining brands, as Royal Copenhagen’s strong heritage in hand-painted dinner service ranges complements Fiskars’ highly respected brands. Upon completion of the transaction, Royal Copenhagen became a part of Fiskars’ Home business area. The acquisition is expected to have a positive effect on Fiskars Group’s EBIT from 2013 onwards.
The acquisition-related costs paid for advisory and valuation services totalled EUR 1.1 million. These costs are included in item "Administration expenses" of the consolidated income statement. The initial accounting for the acquisition is incomplete, and therefore preliminary amounts for identifiable assets acquired and liabilities assumed are disclosed. Goodwill arising from the acquisition is estimated to amount to EUR 28 million, and is related to Fiskars' strengthening position in the Nordic countries, as well as in Asia, where Royal Copenhagen ranks among the leading brands selling premium dining products. Goodwill will not be deductible for income tax purposes.
The following table summarises the preliminary amounts of identifiable assets acquired and liabilities assumed at the acquisition date, as well as the preliminary amounts of the consideration transferred and arising goodwill:
Intangible assets (excluding goodwill)
Property, plant & equipment
Deferred tax assets
Non-current assets total
Trade and other receivables
Cash and cash equivalents
Current assets total
Interest bearing liabilities
Deferred tax liabilities
Pension liability and provisions
Non-current liabilities total
Interest bearing liabilities
Trade payables and other current liabilities
Current liabilities total
The acquired entities will be consolidated to the consolidated financial statements as of January 4, 2013.
* Non-controlling interests are measured at the non-controlling interest's proportionate share of the acquiree's identifiable net assets.
Welcome to the Fiskars Annual Report. This year, for the first time, the annual report is published entirely in electronic format. The online annual report gives you a chance to look into our financial statements, our business, our sustainability and personnel in a more convenient way. In addition to browsing the annual report content you can download and share different parts of the content.