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VARIABLE INTEREST ENTITIES AND ACQUISITIONS
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
VARIABLE INTEREST ENTITIES AND ACQUISITIONS

16. VARIABLE INTEREST ENTITIES AND ACQUISITIONS

 

Asset acquisitions

 

On July 26, 2023, Forafric acquired 90% of Société Industrielle de Minoterie du Sud (“SIMS”), a soft wheat milling company with primary operations in Marrakesh, for cash consideration and noncontrolling interest in the amount of approximately $56 and the assumption of SIMS’ outstanding debts for $5,318.

 

The transaction met the screen test and was accounted for as an acquisition of assets under U.S. GAAP. Accordingly, the acquisition cost was allocated on a relative fair value basis.

 

 

FORAFRIC GLOBAL PLC AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

 

The following table represents the final purchase cost allocation:

 

   Allocated cost 
Property, plant, and equipment  $8,788 
Intangible assets   686 
Right-of-use assets   331 
Inventories   59 
Accounts receivable   28 
Cash and cash equivalents   7 
Other liabilities, noncurrent   (2,328)
Accounts payable   (1,503)
Other payables   (694)
Total net assets acquired  $5,374 

 

Changes in non-controlling interest

 

Acquisition of additional interest in Sanabil

 

During 2023, the Company increased its ownership in Sanabil SA from 60% to 80% in exchange for the forgiveness of amounts due from the minority shareholders.