The Group acquired 100% of the voting rights of Pulssar Technologies S.A.S. (Paris, France) to increase the technology portfolio of its 'Partnering Business' on February 28, 2017. The fair value of the identifiable assets and liabilities and the net cash outflow at the date of acquisition were:

The acquisition was accounted for using the acquisition method. The resulting goodwill includes expected synergies from the acquisition, the work force and potentially other intangible assets that were not identifiable separately. It is not expected to be deductible for tax purposes.

At the acquisition date, the fair value of the contingent consideration was estimated to be CHF 1.7 million. The fair value was determined using the discounted cash flow method with a discount rate of 11.0%. One earn-out payment in the amount of EUR 2.0 million was agreed with the seller upon the achievement of a sales-defined milestone in 2019. The business plan underlying the acquisition indicates that the entire earn-out will be payable.

From the date of acquisition, Pulssar Technologies S.A.S. contributed sales of CHF 0.6 million and operating profit of CHF -0.1 million to the Group’s results. If the acquisition had occurred on January 1, 2017, management estimates that the consolidated sales would have been CHF 253.6 million and the consolidated operating profit would have been CHF 29.6 million for the first half of 2017. The Group incurred acquisition-related costs of CHF 0.2 million for legal advice and due diligence costs. These costs have been included in ‘General and administration’.

In the second half of 2016 management committed to a plan to sell its manufacturing facility after having transferred all business activities to Männedorf. Accordingly, the facility and the related mortgage are presented as a disposal group held for sale. Efforts to sell the disposal group continue.

The disposal group comprised the following assets and liabilities:

Land and buildings are valued at the lower of their carrying amount and fair value less costs to sell.