Business combinations

On January 20, 2009 the Group, through its subsidiary Bencom S.r.l., acquired 100% of My Market S.r.l., a company which manages 41 stores selling Benetton Group products in Tuscany and Liguria. My Market S.r.l. controls all of Benver S.r.l., the owner of another four stores.

At the same time that Bencom S.r.l. acquired this interest, My Market S.r.l. and Benver S.r.l. entered an arrangement with third parties to lease the entire business comprising the 45 stores owned by the two companies.

As part of the process of simplifying the Group's corporate structure, My Market S.r.l. and Benver S.r.l. were merged into Bencom S.r.l. with effect from June 27, 2009 (effective from January 20, 2009 for tax and accounting purposes).

The figures relating to this transaction can be summarized as follows:

Pre-combination

Adjustments

(thousands of Euro)

value

to fair value

Fair value

Property, plant and equipment

4,159

-

4,159

Intangible assets

44

-

44

Deferred and commercial charges

196

8,114

8,310

Guarantee deposits

1,622

-

1,622

Other receivables

14,867

-

14,867

Liabilities

(21,247)

-

(21,247)

Fair value of assets acquired

7,755

Goodwill

8,800

Acquisition cost

16,555

The goodwill arises from recognition of the acquired enterprise's commercial and organizational know-how.

The pre-tax loss arising from the business combination has been Euro 1 million since the date of acquisition.

stampa