Vetoquinol Universal Registration Document 2019

98   Vetoquinol  Universal Registration Document 2019  Financial report 6 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 6.5.36.3 Capital expenditure commitments At the balance sheet date, Vetoquinol had contracted the following capital expenditure not recorded in the financial statements: €000 Dec 31, 2019 Dec 31, 2018 Intangible assets 2,242 675 Property, plant and equipment 1,590 4,922 TOTAL 3,832 5,597 6.5.37 Contingent assets and liabilities None. 6.5.38 Related party disclosures 6.5.38.1 Compensation paid to key executives €000 Dec 31, 2019 Dec 31, 2018 Short-term benefits 1,264 1,182 Post-employment benefits TOTAL 1,264 1,182 Vetoquinol Group top management includes: • Matthieu Frechin, Chief Executive Officer; • Étienne Frechin, Chairman; • Jean-Yves Ravinet, Group Chief Operating Officer; • Alain Masson, Deputy CEO and Chief Pharmacist. 6.5.38.2 Related party transactions None. 6.5.39 Post-balance sheet events COVID-19 The financial statements of the entity have been pre- pared on a going concern basis. The operations of the Vetoquinol Group subsidiaries began to be affected by the COVID-19 epidemic from Q2 2020 and the entity expects to see an adverse impact on the financial state- ments for 2020 or 2021. However, given the recent nature of the epidemic and the measures announced by the government to support businesses, the Company cannot at present provide a quantified estimate of the damage. As of the date on which the shareholders of the entity approved the financial statements for 2019, manage- ment was not aware of any major uncertainties liable to cast doubt on the entity’s ability to continue operating. VETOQUINOL TO ACQUIRE RIGHTS FOR PROFENDER ® AND DRONTAL ® FROM ELANCO ANIMAL HEALTH FOR THE EUROPEAN ECONOMIC AREA AND THE UK On February 12, 2020, Vetoquinol agreed terms to acquire the European Economic Area and UK rights to Profender ® and Drontal ® product families from Elanco Animal Health. This acquisition will be financed through a combination of available cash and committed finan- cing from Vetoquinol banking partners for $140 million in an all cash deal subject to customary post-closing adjustments. The deal is expected to close by mid-year 2020. According to the terms of the deal, Vetoquinol will acquire the Profender ® and Drontal ® product fami- lies, the intellectual property, registrations and other rights currently owned by Bayer AG’s animal health business. The Profender ® and Drontal ® families of pro- ducts are spot-on and tablet de-wormer products for cats and dogs. Vetoquinol’s acquisition of Profender ® and Drontal ® is related to Elanco’s acquisition of Bayer AG’s animal health business, which is subject to regulatory approval from European Commission and the Federal Trade Commission.