Close

Annual Report 2013

q4 2013

q3 2013

q2 2013

q1 2013

Annual Report 2014

q4 2014

q3 2014

q2 2014

q1 2014

Annual Report 2015

q4 2015

q3 2015

q2 2015

q1 2015

q1 2016

q2 2016

q3 2016

Acquisitions
American Hydro Corporation
On 30 June 2016, Wärtsilä acquired a USA and Canada based company American Hydro Corporation from the Weir Group plc.
American Hydro is a leading supplier and installer of large equipment upgrades and servicing for the hydroelectric and water distribution industries, specializing in consultancy, design and precision performance enhancements for hydro-turbines and pumps. This acquisition will enable Wärtsilä to grow and expand its existing global Hydro and Industrial service offering.
The following tables summarise the preliminary amounts for the consideration paid for American Hydro, the cash flow from the acquisition and the amounts of the assets acquired and liabilities assumed recognised at the acquisition date.
Preliminary consideration MEUR
Consideration transferred 49
Total consideration transferred 49
Preliminary cash flow from the acquisition MEUR
Consideration paid in cash 47
Contingent consideration 2
Cash and cash equivalents of the acquired companies -4
Total cash flow from the acquisition 44
Provisional values of the assets and liabilities arising from the acquisition MEUR
Intangible assets 5
Property, plant and equipment 20
Inventories 1
Trade and other receivables 8
Cash and cash equivalents 4
Total assets 38
Trade payables and other liabilities 5
Deferred tax liabilities 1
Total liabilities 6
Total net assets 32
Preliminary goodwill 17
The preliminary fair values of acquired identifiable intangible assets at the date of acquisition (including customer relationships and order book) amounted to EUR 5 million. The fair value of current trade receivables and other receivables is approximately EUR 8 million. The fair value of trade receivables does not include any significant risk.
The preliminary goodwill of EUR 17 million reflects the value of know-how and expertise in hydroelectric and water distribution industries. Wärtsilä foresees that the acquisition will strengthen its presence in hydro and industrial services as well as support growth strategy and expansion in renewables, improving Wärtsilä's offering and services towards customers. The goodwill recognised for American Hydro is expected to be mainly tax deductible.
During 2016 the Group incurred acquisition-related costs of EUR 1 million related to external legal fees and due diligence costs. The costs have been included in the other operating expenses in the condensed statement of income.
Due to the acquisition happening on 30 June 2016, American Hydro did not contribute to the condensed statement of income. If the acquisition had occurred on 1 January 2016, management estimates that consolidated net sales would have been EUR 2,183 million. The impact in the consolidated operating result would not have been significant. In determining these amounts, management has assumed that the fair value adjustments, which arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2016.

Note

Make a note?

Close

For the best experience of our Annual Report, please update your browser to a newer version.