Acquisition of businesses
On 4 October 2018, Bodycote acquired a facility in the US to strengthen the Group's network and to enhance the process offering in the USA. The acquisition fits well with the Group's automotive and general industrial strategy. This is the only acquisition during 2018.
The transaction has been accounted for by the purchase method of accounting and is summarised below:
| 2018
£m |
| Fair value of net assets acquired: | |
| Intangible fixed assets | 3.0 |
| Property, plant and equipment | 2.1 |
| Trade and other receivables | 0.7 |
| Trade and other payables | (0.6) |
| Cash and cash equivalents | 0.1 |
| Deferred tax liabilities | (0.9) |
| Bank loans | (0.6) |
| 3.8 |
| Goodwill | 3.2 |
| Total consideration | 7.0 |
| Satisfied by: | |
| Cash consideration | 6.9 |
| Accrued consideration | 0.1 |
| Net cash outflow arising on acquisition: | |
| Cash consideration | 7.0 |
| Less: cash and cash equivalents acquired | (0.1) |
| 6.9 |
Acquisition-related costs amounted to £0.5m (2017: £nil).
The acquired business contributed £1.2m revenue and £0.3m headline operating profit for the period between the dates of acquisition and the balance sheet date.
If the acquisitions had been completed on the first day of the financial year, Group revenue would have been £732.8m and Group headline operating profit attributable to equity holders of the parent, stated prior to Group management charges, would have been £139.3m.
Deferred payments on acquisitions
Payments totaling £1.4m were made during the year in respect of deferred consideration due on acquisitions made in 2016. The amounts were recorded in other receivables at 31st December 2017.
Disposal of businesses
On 19 October Bodycote sold its shareholding in FHK GmbH (Steinbach) for consideration of £0.5m. During the year, the Steinbach facility contributed £1.0m (2017: £1.2m) to Group revenue and contributed headline operating profit/(loss) of £0.1m (2017: (£0.2m)) to Group results.
On 27 November, Bodycote sold 51% of its shareholding in Techmeta Engineering for consideration of £0.8m. During the year, the Techmeta facility contributed £4.1m (2017: £4.9m) to Group revenue and contributed headline operating profit of £0.2m (2017: £0.4m) to Group results. The remaining 49% shareholding held by Bodycote is disclosed under investment in associate in the consolidated balance sheet.
Investment in associate
| 2018
£m | 2017
£m |
| Investment in associate | 1.4 | - |
| Loan receivable from associate | 2.7 | - |
| 4.1 | - |
Prior to disposal the Group provided an interest bearing credit facility of £3.6m to Techmeta Engineering repayable over 10 years. At the balance sheet date £2.7m remained outstanding.