Acquisitions & Disposals

On 1 January 2016, the Migros Cooperative Zurich and its German subsidiary Migros Freizeit Deutschland GmbH increased their minority interest in INLINE Unternehmensberatung für Fitness- und Wellnessanlagen GmbH in Dorsten from 30% to 100%. With INJOY, INLINE has a franchise system comprising more than 200 fitness studios in Europe.

On 15 April 2016, the Migros Cooperative Neuchâtel-Fribourg acquired the real estate company JSL Real Estate SA and therefore the group of buildings that make up the Migros shopping centre in Granges-Paccot.

On 1 February 2016, Micarna SA acquired Gabriel Fleury SA, the Valais-based long-established company renowned for dried meat, together with its 15 employees at its production facility in Granges.

On 31 July 2016, the Mibelle Group acquired the Ondal France S.a.r.l. production facility in Sarreguemines from P&G (Procter & Gamble), together with its entire workforce of approximately 180 employees. This transaction consolidates the already close commercial relationship which Migros enjoys with P&G and is a systematic continuation of the international growth strategy. The company specialises in hair, face and body care products.

On 27 September 2016, Estavayer Lait SA (ELSA) acquired a majority interest in the company Idhéa, based in Hochfelden in the Alsace region of France. Idhéa specialises in the production and sale of cold sauces and spices. This merger sees the two companies joining forces in an effort to further promote the sale of sauces both domestically and abroad. The production of salad sauces and other sauces will be transferred gradually from Estavayer-le-Lac to Hochfelden by the start of 2018.

As far as the following transactions are concerned, the information relating to financial statements was either unavailable at the time of the Migros Group financial statements being released or not all of the contractual conditions had been met. Consequently, the initial recognition of the business combination was not possible. Full-year inclusion in Migros Group will only be shown in 2017:

• Acquisition of Checkup Center Zürich AG by Medbase AG on 31 October 2016, thereby strengthening the preventive health care sector
• Acquisition of the travel agency Beo AG in Thun by Hotelplan on 31 October 2016
• Acquisition of a majority shareholding in Sushi Mania SA, a company providing Japanese cuisine and Asian specialities and based in Vuadens in the canton of Fribourg, together with 110 employees by Bischofszell Nahrungsmittel AG on 13 December 2016

On 31 October 2016, Hotelplan Group divested its business unit Hotelplan Italia, which was sold to the Italian tour operator Eden Viaggi on favourable terms that included the retention of all existing jobs.

Please see Note 39 for further details.

The following companies were acquired during the 2015 financial year:

On 2 December 2014, Micarna SA acquired Rudolf Schär AG, Thal. Since information relating to the financial statements of the acquired Rudolf Schär AG was not yet available at the time of the 2014 Migros Group financial statements being released, the initial recognition of the business combination was not possible until the 2015 financial year (inclusion on 1 January 2015). Rudolf Schär AG was established in 1945 in St. Gallen and is a producer of speciality sausage products. Under a succession arrangement, Micarna SA acquired the long-established company, together with all 90 employees, which generated sales of around CHF 33 million in 2015. On 1 July 2015, Micarna SA acquired Maurer Speck, a leading manufacturer of high-quality and traditional speciality bacon products based in Flüh in the canton of Solothurn, also under a succession arrangement.

A further succession arrangement saw Saviva, which is also part of Migros Industry, acquire the Lüchinger + Schmid Group with effect from 1 January 2015. With sales of CHF 184 million and a workforce of 270 employees, the company is known for selling and producing eggs, egg products, chilled fresh produce and frozen products and will continue to operate independently on the market. The acquisition will see Saviva further expand its market position in the delivery wholesale business.

On 1 February 2015, the Mibelle Group acquired a majority shareholding of 51% in the British Quantum Beauty Company, thereby expanding its business in exclusive brands. The portfolio includes brands such as Lee Stafford, Arganoil and Salon Science.

Migrol AG acquired 90 % of the shares in Swisstherm AG with retroactive effect from 1 January 2015. For Migrol, this represents a key strategic step towards being able to serve the heating market in Switzerland with additional products and services.

With retroactive effect from 1 January 2015, Activ Fitness AG, which is part of the Migros Cooperative Zurich, acquired the four Pleine Forme fitness centres in the canton of Neuchâtel, which together have 3'500 members. On 1 April 2015, the Migros Cooperative Zurich also acquired Marinello AG, which operates a number of food stores in Zurich, together with the company's 75 employees. The "Marinello" brand, as well as Marinello + Co AG, which operates in Zurich's Engros market, are not part of the acquisition.

On 1 April 2015, the Federation of Migros Cooperatives increased its share package in Digitec Galaxus AG from an original interest of 30 %, and of 39.1 % following the departure of one of the company's co-founders, to 70%, thus making it the majority shareholder. Digitec has for years been the leading online player in the Swiss consumer electronics market, with sales of over CHF 600 million. Galaxus is already Switzerland's largest online shop, a position which it aims to strengthen and expand further.

In mid-October 2015, Medbase AG acquired a 70% stake in santémed Gesundheitszentren AG from SWICA, thereby increasing its involvement in the health sector. The partnership has given rise to the largest network for basic outpatient medical care.

In July 2015, the Migros Cooperative Aare entered into a partnership with Golf Limpachtal and immediately assumed responsibility for running the golf course. To this end, Migros Aare acquired 54.4% of the shares in Public Golf Bucheggberg AG (driving range, property) and 100% of Golf Limpachtal Betriebs- und Verwaltungs AG (personnel, machinery, EDP and administration).

The acquisitions of Explore Worldwide, the soft adventure provider, and the diving specialist Regaldive by Hotelplan Group on 1 December 2015, are not shown in the 2015 financial year. Since information relating to the financial statements of these two companies was not yet available at the time of the Migros Group financial statements being released, the initial recognition of the business combination was not possible. The two British companies, in which Hotelplan Group has acquired 100 % of the shares, together generate annual sales of around CHF 75 million and employ more than 120 people.

(GRI-Index: G4-22)