Notes to the consolidated financial statements
Ahold at a glance
Annual Report 2014
SPAR in the Czech Republic
On August 1, 2014, Ahold announced that it had successfully completed the acquisition of SPAR's business in the Czech Republic. The purchase consideration was CZK 5,170 million (€187 million) payable in cash for 100%
of the voting equity interest, subject to finalization of the purchase price. With this transaction, Ahold acquired 49 stores, of which 35 are compact hypers and 14 are supermarkets, as well as a location which is still under
development. Goodwill recognized in the amount of CZK 2,783 million (€100 million), which will not be deductible for tax purposes, represents expected synergies from the combination of operations.
As of the acquisition date, SPAR contributed €177 million to 2014 net sales and lowered net income by €13 million in 2014. The impact excludes €4 million in transaction costs related to the acquisition, that is included in
general and administrative expenses. Had the acquisition occurred on December 30, 2013, Ahold's pro-forma net sales through December 28, 2014, would have been approximately €33,016 million. The pro-forma net
income would have been approximately €572 million, due to the SPAR acquisition.
On August 14, 2012, Ahold announced that its Albert Heijn division had completed the acquisition of 78 C1000 and four Jumbo stores from Jumbo for €290 million in cash, with €266 million paid by December 28, 2014
(2014: €2 million, 2013: credit €1 million and 2012: €265 million), and the remaining amount to be settled as agreements are reached with the franchisees. As of December 28, 2014, Ahold had reached agreement
with 58 franchisees, related to which 54 stores have been converted and opened under the Albert Heijn banner by the end of 2014. Agreements with the franchisees for the remaining 24 stores are yet to be reached and
these stores are to be converted to the Albert Heijn banner over a period of time. In 2014, Ahold recognized an €8 million impairment loss of prepaid consideration. Goodwill recognized in the amount of €174 million by
December 28, 2014 (2014: €45 million, 2013: €76 million and 2012: €53 million), which will not be deductible for tax purposes, represents expected synergies from the combination of operations, as well as the ability to
expand Ahold's geographic reach.
The 54 stores that were converted to the Albert Heijn banner have contributed €278 million to 2014 net sales (2013: 39 stores, €149 million) and €7 million to 2014 net income (insignificant amount to 2013 net income). It is
not practicable to provide the 2014 and 2013 pro-forma effect on Ahold's net sales and net income.
Other 2014 acquisitions
During 2014, Ahold completed several minor store acquisitions in the Netherlands, Belgium, and the U.S. for a combined purchase consideration of €21 million.
All acquisitions were accounted for using the acquisition method of accounting.
The allocation of the fair value of the net assets acquired and the goodwill arising from the acquisitions during 2014 is as follows:
Property, plant and equipment and investment property
Other intangible assets
Reversal of other intangible assets
Deferred tax asset
Total purchase consideration
Acquisition of business, net of cash acquired