4 Acquisitions
Ahold Annual Report 2012 88
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Notes to the consolidated
financial statements
2012 acquisitions
Acquisition of bol.com
In May 2012, Ahold acquired bol.com. The purchase consideration was €353 million in cash for 100% of the voting equity interest. The acquisition was made to further expand Ahold's online
presence and broaden the range of its product offering into new non-food categories. Goodwill recognized in the amount of €248 million, which will not be deductible for tax purposes,
represents expected synergies from the combination of operations, as well as the ability to broaden Ahold's offering and expand its geographic reach. Included in other intangible assets
acquired were information technology, customer lists and a trade name.
Bol.com contributed €294 million to net sales and had an insignificant impact on net income in the period from May 9 to December 30, 2012. The impact excludes €6 million in transaction
costs related to the acquisition, included in general and administrative expenses. Had the acquisition occurred on January 2, 2012, Ahold's 2012 pro-forma net sales would have increased by
€111 million to €32,952 million. The pro-forma effect on Ahold's consolidated net income of €827 million for 2012 would have been insignificant.
Acquisition of Genuardi's Family Markets stores
In July 2012, the Giant Carlisle division acquired 15 Genuardi's Family Markets stores from Safeway. The stores acquired are located in the greater Philadelphia area. The total purchase
consideration was $113 million (€91 million) for 15 store locations, equipment and lease agreements. Goodwill recognized amounted to $77 million (€62 million) and represents synergies
from the combination of operations, as well as the ability to service customers in a new geographic area. Of this amount, $72 million (€58 million) is deductible for tax purposes.
These stores contributed $1 65 million (€129 million) to net sales and had an insignificant impact on net income in the period from July 13 to December 30, 2012, before one-time start-up
and conversion costs of $16 million (€13 million). The result excludes €2 million in transaction costs related to the acquisition, included within general and administrative expenses. It is not
practicable to provide the 2012 pro-forma effect on Ahold's net sales and net income.
Transaction with Jumbo
In August 2012, Ahold announced that its Albert Heijn division had completed its transaction with Jumbo concerning 78 C1000 and 4 Jumbo stores for €290 million with €265 million paid
up to December 30, 2012, and the remaining to be settled as agreements are reached with the franchisees. During the second half of 2012, 15 of the stores were converted to the Albert
Heijn banner. The remaining 67 franchisee-owned stores will be converted to the Albert Heijn banner over a period of time, in close cooperation with the entrepreneurs. €204 million of the
amount paid, relating to these 67 stores, was included in other intangible assets (see Note 13). Goodwill recognized in the amount of €53 million relates to the stores that have been converted
to the Albert Heijn banner and represents expected synergies from the combination of operations, as well as the ability to expand Ahold's geographic reach. The amount will not be deductible
for tax purposes. The amounts recognized in the financial statements for this transaction were determined on a provisional basis.
The 15 stores that were converted to the Albert Heijn banner have contributed €33 million to net sales and an insignificant amount to net income. It is not practicable to provide the 2012 pro-
forma effect on Ahold's net sales and net income.
