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 2011 financial year included the following:

In 2009, the Federation of Migros Cooperatives acquired a 49% share in the German retailer Gries Deco Holding GmbH, Niedernberg (Germany), with the aim of expanding this investment in the medium term. Under the leadership of the Federation of Migros Cooperatives, a growth strategy was devised together with Gries Deco at the end of 2010. With financing from the Federation of Migros Cooperatives, work on implementing this strategy has been ongoing since the start of 2011. Since this means that Migros Group in effect controls Gries Deco, since 1 January 2011, the company has no longer been reported as an associate but instead as a fully consolidated subsidiary with a shareholding of 51.1%. Gries Deco runs 224 stores in Germany and Austria, selling home accessories, decorating products and smaller items of furniture under its Depot brand.

On 11 August 2011, the Hotelplan Group announced the acquisition of a 26% share in Germany's Inter Chalet Ferienhaus-Gesellschaft mbH, Freiburg im Breisgau (Germany). The investment in Inter Chalet, which is to be increased in the medium term, will enable the Hotelplan Group to exploit synergies with Interhome, one of its subsidiaries. With more than 500 employees, Inter Chalet and Interhome together market some 50'000 holiday homes and generate sales in excess of EUR 300 million. Inter Chalet was included as an associate as of 1 November 2011.

As of 1 July 2011, rlc packaging group based in Hanover (Germany) acquired Limmatdruck AG, Spreitenbach, as well as its subsidiary, Zeiler AG, Köniz. As the previous owner, the Federation of Migros Cooperatives has thus sold its interest in the packaging business as this is no longer part of Migros' key duties. Thanks to the takeover by the long-established German family-owned enterprise, an ideal solution was found for both of the sold companies and their employees.

The effects (from the date of inclusion in the scope of consolidation) of the extension of the scope of  consolidation for Migros Group and the individual segments are shown below:

CHF million
Cooperative Retailing17.029.6-12.6
Total effect of acquisitions290.7317.2-26.5


The following companies were acquired during the financial year 2010:

Mibelle AG announced the acquisition of a majority stake in Hallam Beauty Ltd, Bradford (UK) on 8 March 2010. Hallam Beauty, which has now been renamed Mibelle Ltd., 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 well-priced, high-quality own brands and already generated more than 50% of sales in exports before the purchase. Hallam Beauty is strengthening Mibelle further and facilitating its access to the cosmetics market in the UK. The company was included in the scope of consolidation 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 skiing 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 companies have been allocated to the segment Travel.

Office World acquired iba AG, Bolligen, a company specialising in mail orders, 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 2010 financial year.