4 Acquisition of subsidiaries

Acquisitions in 2024

In 2024, the group exercised its fixed-price forward and acquired an additional 10% equity interest in Guangdong Qiaoyi Plastic Co. Ltd. ("Qiaoyi") for CHF 4.5 million, increasing its total ownership to 80%. In 2023, the current payables from the purchase of a subsidiary, amounting to CHF 4.4 million, were recognized in other current and accrued liabilities (see note 26).

At any time after July 5, 2027, the non-controlling shareholders can exercise a put option to sell, and the group can exercise a call option to purchase, the remaining 20% equity interest held by the non-controlling shareholders for a formula-based purchase price. The group recognized a redemption liability, recorded in other non-current liabilities (note 24), based on the discounted put exercise price in equity. Changes in the put exercise price and accretion effects over the contract period are recognized in equity (note 20).

Acquisitions in 2023

On July 5, 2023, the group acquired 70% of the issued share capital and voting interests in Guangdong Qiaoyi Plastic Co. Ltd. (“Qiaoyi”) for CHF 31.3 million. Qiaoyi operates as part of medmix' Beauty business unit.

The following table summarizes the recognized amounts of assets acquired and liabilities assumed at the date of acquisition, including the resulting goodwill and the total consideration.

Net assets acquired at the date of acquisition

millions of CHF		Qiaoyi
Intangible assets		24.0
Property, plant and equipment		5.1
Lease assets		1.6
Inventory		2.3
Advance payments to suppliers		0.0
Trade accounts receivable		2.1
Other current receivables and prepaid expenses		6.6
Cash and cash equivalents		1.9
Deferred income tax liability		–5.3
Current income tax liabilities		–7.2
Contingent liabilities (recorded as current provisions)		–6.4
Contract liabilities		–0.6
Trade accounts payable		–0.4
Other current and accrued liabilities		–3.0
Net identifiable assets		20.8
Non-controlling interests		–9.0
Goodwill recognized in balance sheet		24.2
Total consideration		36.0

Purchase price paid by the group		31.3
Purchase price not yet paid		4.7
Total consideration		36.0

Cash flow from acquisitions of subsidiaries

millions of CHF	2024	2023
Cash consideration paid	–4.5	–31.3
Cash acquired	–	1.9
Total cash flow from acquisitions, net of cash acquired	–4.5	–29.4