Investor Relations
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Note 29 - Acquisition of subsidiaries/operations

      Fair value
  Carrying amount Fair value recognized
2007/2008 before acquisition adjustment in the Group
Tangible fixed assets  225 225
Inventories 1,245 1,245
Total identified net assets     1,470
Goodwill     200
Total identified net assets including goodwill     1,670
Purchase price paid     1,670
Effect on consolidated cash and cash equivalents     1,670

In April 2008, one franchise store was acquired in Motala, with annual sales of SEK 6.2 M. The purchase price totaled SEK 1.7 M and was paid in cash. The assets and liabilities in the store amounted to SEK 1.5 M, resulting in goodwill of SEK 0.2 M. The store contributed SEK 0.4 M in sales and SEK 0.0 M in operating profit during the fiscal year.

No intangible assets other than goodwill and Rental rights were identified in the acquisitions of franchise stores that took place in the fiscal years 2005/2006, 2006/2007 and 2007/2008. Goodwill values arising in conjunction with these acquisitions represent the value of established businesses and payment for future economic benefits that can be identified in each case and which are also not possible to report separately.

Since Hemtex AB supplied most of the goods that the acquired franchise stores sold, the Group’s sales will not be affected by all of the sales contributions at the consumer level mentioned above. The estimated sales increase for the Group amounts to about half of the acquired sales.

      Fair value
  Carrying amount Fair value recognized
2008/2009 before acquisition adjustment in the Group
Tangible fixed assets  522 522
Inventories 1,191 1,191
Total identified net assets     1,713
Goodwill     6,500
Total identified net assets including goodwill     8,213
Purchase price paid     8,213
Effect on consolidated cash and cash equivalents     8,213

In June 2008, one franchise store was acquired in Östersund, with annual sales of SEK 5.5 M. The purchase price totaled SEK 8.2 M and was paid in cash. The assets and liabilities in the store amounted to SEK 1.7 M, resulting in goodwill of SEK 6.5 M. The store contributed SEK 5.5 M in sales and SEK 0.9 M in operating profit during the fiscal year.

No intangible assets other than goodwill and Rental rights were identified in the acquisitions of franchise stores that took place in the fiscal years 2007/2008 and 2008/2009. Goodwill values arising in conjunction with these acquisitions represent the value of established businesses and payment for future economic benefits that can be identified in each case and which are also not possible to report separately.

Since Hemtex AB supplied most of the goods that the acquired franchise stores sold, the Group’s sales will not be affected by all of the sales contributions at the consumer level mentioned above. The estimated sales increase for the Group amounts to about half of the acquired sales. No acquisitions were made during the shortened 2009 fiscal year.

During the abbreviated 2009 fiscal year, there were no acquisitions.