2 Change in the scope of the consolidation
Acquisitions

2007
In July, DSM acquired 100% of the cosmetic active ingredients specialist Pentapharm Holding Ltd. Pentapharm has annual net sales of some €40 million and employs about 200 people at locations in Switzerland, Japan and Brazil. The goodwill of €31 million primarily results from the know-how of the employees and from the fact that the acquisition provides DSM Nutritional Products with a stronger position in the market for active ingredients for the cosmetics industry. The impact of the acquisition of Pentapharm on DSM’s consolidated balance sheet, at the date of acquisition, is shown in the next table:
 
Carrying
amount
Adjustments
to fair
value
Opening
balance
DSM
Assets
 
 
 
Intangible assets
-
12
12
Property, plant and equipment
13
5
18
Prepaid pension costs
2
-
2
Other financial assets
0
-
0
Inventories
4
12
16
Receivables
10
-
10
Cash and cash equivalents
9
-
9
 
 
 
 
Total assets
38
29
67
 
 
 
 
Liabilities
 
 
 
Deferred tax liabilities
3
7
10
Other non-current liabilities
5
-
5
Current liabilities
12
-
12
 
 
 
 
Total liabilities
20
7
27
 
 
 
 
Net assets
18
22
40
Acquisition price (in cash)
 
 
62
Acquisition price (payable)
 
 
8
Acquisition costs
 
 
1
 
 
 
 
Goodwill
 
 
31
The impact of all acquisitions made in 2007 on DSM’s consolidated balance sheet, at the date of acquisition, is summarized in the next table:
 
Pentapharm
Other
acquisitions
Opening
balance
DSM
Assets
 
 
 
Intangible assets
12
5
17
Property, plant and equipment
18
19
37
Prepaid pension costs
2
-
2
Other financial assets
0
0
0
Inventories
16
2
18
Receivables
10
8
18
Cash and cash equivalents
9
3
12
 
 
 
 
Total assets
67
37
104
 
 
 
 
Liabilities
 
 
 
Minority interest
-
2
2
Deferred tax liabilities
10
-
10
Other non-current liabilities
5
-
5
Current liabilities
12
18
30
 
 
 
 
Total liabilities
27
20
47
 
 
 
 
Net assets, at fair value
40
17
57
Acquisition price (in cash)
62
22
84
Acquisition price (payable)
8
0
8
Acquisition costs
1
0
1
Consideration paid
71
22
93
 
 
 
 
Goodwill
31
5
36
The acquisitions in 2007 contributed €23 million to net sales. If all acquisitions had occurred on 1 January 2007, additional net sales would have been €41 milion. The acquisitions in 2007 only made a marginal contribution to profit for the year; this would have been the case even if they had all occurred on 1 January 2007.
On 16 January 2008 DSM announced the acquisition of the US-based company Soluol, a developer, producer and marketer of high performance urethane resins which are used in a wide range of applications, with annual sales of USD 20 million. The acquisition of Soluol enhances DSM’s specialty-resins presence in North America and adds new technology as well as a state-of-the-art production facility in Rhode Island. The acquired company will be grouped under the DSM NeoResins+ business unit, part of the DSM Resins business group. Further disclosures will only be provided in next years annual report in view of the fact that reliable information is not yet available.
2006
In 2006 DSM acquired CRINA SA, the remaining 73% of the share capital of Lipid Technologies Provider AB and the remaining 50% of the share capital of Fersinsa GB SA de CV. These acquisitions had the following impact on the balance sheet:
Assets
 
 
Intangible assets
7
 
Property, plant and equipment
14
 
Other financial assets
(3)
 
Inventories
6
 
Receivables
5
 
Cash and cash equivalents
5
 
 
 
 
Total assets
 
34
 
 
 
Liabilities
 
 
Provisions
1
 
Defered tax liabilities
2
 
Other liabilities
9
 
 
 
 
Total liabilities
 
12
 
 
 
Net assets, at fair value
 
22
Acquisition price (in cash)
 
41
Acquisition costs
 
1
 
 
 
Goodwill
 
20
Disposals

2007
In 2007 DSM disposed of various smaller participations.
2006
Discontinued operations
DSM Minera was sold on 19 January 2006 for a total cash consideration of €74 million. The business had already been classified as held for sale as at 31 December 2005. Furthermore, DSM disposed of various small participations.