Report on the Financial Situation of Migros Group
Acquisitions and Disposals
During the last two years, Migros Group has acquired and sold various companies. These transactions have interrelated effects on the income statement and balance sheet. Transactions carried out in the 2010 financial year included the following:
Mibelle AG reported the acquisition of a majority stake in Hallam Beauty Ltd, Bradford (UK) on 8 March 2010. Hallam Beauty is one of the biggest and most successful independent cosmetics manufacturers in the UK. Mibelle has specialised very successfully in the development and production of cost-efficient, high-quality own brands and already generated more than 50 per cent of sales in exports before the purchase. Hallam Beauty will further strengthen Mibelle and facilitate its access to the cosmetics market in the UK. The company will be included in the consolidation group as of 1 January 2010. The company has been allocated to the segment Industry & Wholesaling.
Hotelplan Group acquired the UK firm Enigma Travel Group, which specialises in ski tourism, as of 1 May 2010. Hotelplan UK – consisting of travel agents Inghams with Inntravel and now the Enigma Travel Group – will become one of the biggest ski and walking holiday specialists in the UK. Furthermore, M-Travel Switzerland, the operating Swiss subsidiary of Hotelplan Group, acquired a majority stake in bta Group, Zug, as of 1 January 2010. bta Group was one of the leading independent Swiss travel agents, and specialises in business trips. M-Travel Switzerland is thereby continuing its strategy and expanding into promising niche markets. The company has been allocated to the Travel segment.
Office World acquired iba AG, Bolligen, a company with a long tradition of mail-order trading, as of 1 August 2010 to become one of the strongest stationery retailers in Switzerland. Both brands will continue to exist and supplement one another in their online and offline expertise and strategic customer focus. The company has been allocated to the segment Commerce.
No companies were sold by Migros Group during the financial year 2010.
The effects (from the date of inclusion in the consolidation group) of the extension of the consolidation group for Migros Group and the individual segments are shown below:
| 2010 CHF million | Income | Expenses | Profit |
| Commerce | 23.8 | 23.0 | 0.8 |
| Industry & Wholesaling | 45.6 | 46.4 | - 0.8 |
| Travel | 9.6 | 11.3 | - 1.7 |
| Total effect of acquisitions | 79.0 | 80.7 | - 1.7 |
The following companies were acquired during the financial year 2009:
The Federation of Migros Cooperatives announced the acquisition of a 49 per cent share in German retailer Gries Deco Holding GmbH, Niedernberg (Germany) on 22 January 2009. Gries Deco runs 145 stores in Germany and Austria, selling home accessories, decorating products and smaller items of furniture. This investment, which is to be expanded in the medium term, will also create synergy potentials for Interio. Gries Deco Holding GmbH was included as an associated company from 1 January 2009.
Migros Cooperative Lucerne took over full ownership of the four training centres of the TC Group Innerschweiz AG, Sursee, Switzerland, as of 1 January 2009. The TC Group’s fitness centres are more focused on families and are an optimum fit with the Cooperative’s four existing fitness parks. The TC Group will be included in the consolidation group as of 1 January 2009. The company has been allocated to the segment Cooperative Retailing.
On 30 December 2009, Bischofszell Nahrungsmittel AG acquired 98 per cent of the equity of Weisenhorn Food Specialities GmbH, Frastanz (Austria), through a capital increase. Weisenhorn manufactures Fresh Produce/Convenience products. By this move, Bischofszell Nahrungsmittel AG has increased its product range in a growing segment and improved its access to the important European market. The company will be included in the consolidation group as of 1 October 2009. The company has been allocated to the segment Industry & Wholesaling.
The Hotelplan Group sold several small investments in the 2009 financial year.