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Notes to Consolidated Financial Statements
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16. Acquisitions and
Divestitures
During 2003, Land O’Lakes divested of a feed business in Taiwan
for $0.4 million in cash, which resulted in a loss of $0.7 million.
The Company also divested a powdered cocoa business for $1.4 million
in cash, which resulted in a gain of $1.4 million.
Proceeds from divestitures in 2002 totaled $22.4 million. The Company
divested its dairy foods and feed operations in Poland for $4.2 million
in cash and $6.3 million in debt assumed, which resulted in a gain
of $1.3 million. Net cash proceeds were $11.0 million on a divestiture
of a seed coating business in Idaho and a seed inoculation business
in Brazil, which resulted in a gain of $4.0 million. Other divestitures
in 2002 resulted in net cash proceeds of $0.9 million and a loss of
$0.3 million.
On October 11, 2001, the Company acquired 100% of the outstanding
stock of Purina Mills, Inc. (“Purina Mills”), a lifestyle
feed business. The results of operations for Purina Mills are included
in the consolidated financial statements since that date. The aggregate
purchase price was approximately $359 million, net of cash acquired,
of which $247 million represented cash payments for stock and acquisition
costs and $112 million represented debt retirement. The unaudited
pro forma results of operations for the year ended December 31, 2001
would have reflected net sales of $6,530.2 million and net earnings
of $71.2 million for the Company assuming the Purina Mills acquisition
had occurred on January 1, 2001. The unaudited pro forma results of
operations are for informational purposes only and do not purport
to represent what the Company’s results of operations would
have been if the acquisition had actually occurred on that date.
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