STRAX
Acquisition of Racing Shield AB (preliminary) With the effective date of December 1, 2019, STRAX acquired all outstanding shares in Racing Shield AB, Stockholm (Sweden), with the main asset being the fashion tech accessories brand Richmond & Finch. Richmond & Finch was founded in 2014 and acquired by STRAX Group in December 2019. The organization is based in Stockholm with five full time employees. Richmond & Finch is a Scandinavian tech accessories brand with focus on style and protection. Richmond & Finch’s products offer affordable luxury with unrivalled quality and are beautifully designed, inspired by the latest fashion. The products are available in many markets around the world with focus on Europe, Asia and USA through e-commerce
ANNUAL REPORT 2019
and retailers in telco and fashion. The investment in Richmond & Finch is part of STRAX strategic move to complement the current brand offering from STRAX. Consideration transferred The total purchase price according to the contract is an earn out structure based on sales and EBITDA development in Racing Shield AB for the period 12/2019 – 2022. The purchase price, based on forecasts has been calculated to KEUR 4 178. Identifiable assets acquired and liabilities assumed through the acquisition. Table, in summary, of the recognized amount of assets acquired and the liabilities assumed through the acquisition KEUR: KEUR
Fixed assets
21
Inventory
535
Accounts receivables
294
Other current assets
35
Long term liabilities
- 598
Interest bearing liabilities
- 471
Accounts payables
- 795
Taxes
- 108
Other current liabilities
- 327
Total identifiable net assets acquired
-1 414
Allocation of acquired assets and goodwill Calculated expected purchase price fair value of trademarks
4 179
Fair value of trademarks
1 045
Fair value of identifiable net assets
-1 414
Goodwill
4 548
The goodwill is attributable to Richmond & Finch position in the market know how of the fashion tech segment and design capabilities. Acquisition related costs were limited to legal and administrative costs amounting to KEUR 15.
For the period December 1 – December 31, 2019, Racing Shield AB contributed to the Group's revenues to the amount of 155, an EBIT of -92 and loss for the period to the amount of 108.
99