[3] Acquisitions

An acquisition is deemed to be significant if its total assets after the purchase price allocation (inclusive of goodwill) exceed EUR 50 m. The main acquisition during the reporting period was American HomePatient, Inc.

American HomePatient, Inc.

With effect from 1 February 2016, The Linde Group acquired 100 percent of the shares in US company American HomePatient, Inc. As from that date, the business has been fully included in the consolidated financial statements of The Linde Group. The company specialises in respiratory therapies to serve the needs of patients with chronic obstructive pulmonary disease (COPD) and sleep apnoea. This acquisition will enable Linde to reinforce its market position in healthcare services and to achieve synergies with its existing business.

The transaction involved a cash payment of around EUR 210 m. After deducting a repayment of financial debt of EUR 24 m and provisions for employee remuneration of EUR 1 m and after taking account of a conditional purchase price repayment claim with an expected value of EUR 11 m, the acquisition cost as defined by IFRS 3 was EUR 174 m. The conditional purchase price repayment claim is due within two years. The extent of the repayment claim lies between EUR 1 m and EUR 12 m.

In the course of its purchase, Linde acquired non-current assets, as well as inventories and other current assets. The principal elements of the provisional figure for goodwill of EUR 154 m are the expected synergies with Linde’s existing Healthcare business and going concern synergies. The purchase price allocation resulted in fair value adjustments of EUR 31 m. These relate to the company brand, customer relationships and tangible assets. None of the goodwill is tax-deductible. Due to the proximity of the acquisition date to the reporting date, the results of the purchase price allocation and the assessment of deferred tax assets arising from tax loss carryforwards are still provisional.

In the course of the transaction, Linde acquired 100 percent of the shares in American HomePatient, Inc. Those non-controlling interests disclosed in the opening balance sheet are the result of pre-consolidated units with shares held by other non-controlling shareholders. The receivables acquired have a fair value of EUR 33 m and are all trade receivables. The gross value of the receivables is EUR 67 m. The difference between the gross value of the receivables and their fair value is a provision for bad debts.

Since the date of acquisition, the business acquired has generated revenue of EUR 47 m and a contribution to profit for the period of EUR 1 m. If the business had been consolidated into The Linde Group from 1 January 2016, the contribution to revenue would have been EUR 70 m and the contribution to profit for the period would have been a loss of EUR 2 m.

Other acquisitions

In the first three months of 2016, Linde made acquisitions to expand its industrial gases business in the EMEA segment. The total purchase price for these acquisitions was EUR 1 m, all of which was paid in cash.

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Impact of acquisitions on the net assets of The Linde Group






Opening balance upon initial consolidation


Fair value

in € million





Non-current assets









Other current assets




Cash and cash equivalents














Non-controlling interests