Kesko sells seven store sites in Estonia and Latvia to UAB Baltic Retail Properties

Helsinki, 2017-May-26 — /EPR Retail News/ — Kesko has sold seven store sites used by Kesko Senukai in Estonia and Latvia to the property investment company UAB Baltic Retail Properties. At the same time, Kesko has acquired a 10% shareholding in the property investment company.

UAB Baltic Retail Properties’ main shareholder is CPA:17 – Global, a property investment fund managed by the US based W. P. Carey Inc., with a 70% ownership interest. The three owners of the property investment company remain in the company as minor shareholders with a total shareholding of 20%.

UAB Baltic Retail Properties has already earlier been an important lessor to Kesko Senukai in Lithuania. In connection with the arrangement, Kesko Senukai has once again leased store sites, which the investment company had already previously owned, as well as new store sites, which have now been transferred to the investment company for its use on 15-year leases with extension options.

The entire deal is valued at approximately €174 million. The selling price of the properties owned by Kesko was €64 million, generating a profit of €50 million on the divestment. Kesko Group’s net cash inflow from the arrangement before tax is approximately €58 million. Kesko Group leases a total of 19 store sites from the property investment company and as a result of the arrangement, lease liabilities increased by approximately €124 million. The arrangement will not have any significant impact on profit.

Kesko Senukai is the Kesko Group company responsible for building and home improvement trade operations in the Baltics and Belarus. Kesko Senukai is the clear market leader in the in the region with 54 stores. In 2016, Kesko Senukai’s sales were close to €600 million.

Kesko and K-retailers form K Group, whose sales total over €13 billion. K Group is the third largest retail operator in Northern Europe and it employs approximately 45,000 people. Kesko operates in the grocery trade, the building and technical trade and the car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. Kesko’s net sales are €10 billion and it employs approximately 30,000 people. Kesko has over 2,000 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia, Belarus and Poland. Kesko is a listed company and its shares are listed on Nasdaq Helsinki. The company’s domicile and main business premises are in Helsinki. Kesko is the world’s most responsible trading sector company (The Global 100 Most Sustainable Corporations in the World). www.kesko.fi

Further information:

Jukka Erlund
Executive Vice President
Chief Financial Officer
jukka.erlund@kesko.fi
tel. +358 105 322 113

Riikka Toivonen
Head of Financial Communications
riikka.toivonen@kesko.fi
tel. +358 105 323 495

Source: Kesko Corporation

Couche-Tard expands operations in Estonia with purchase of majority assets of Premium 7®

Laval, Québec, Canada, 2016-Jun-27 — /EPR Retail News/ — Alimentation Couche-Tard Inc. (“Couche-Tard”) (TSX: ATD.A/ATD.B) announces today that it has signed, through its wholly-owned indirect subsidiary Circle K Eesti AS, an agreement to purchase majority of the assets operated under the Premium 7® brand from Sevenoil Est OÜ and its affiliates. The assets are comprised of 23 sites, including 11 full service fuel stations with convenience stores and 12 automated fuel stations. The transaction is anticipated to close in the second quarter of Couche-Tard’s fiscal year 2017 and is subject to the standard regulatory approvals and closing conditions. The acquisition will be financed from Couche-Tard’s available cash and existing credit facilities. The parties have agreed not to disclose the purchase price for this acquisition.

Couche-Tard would buy the land and buildings for 23 locations. Following the acquisition, all the sites would be operated under the Statoil brand and within a year rebranded and operated under the Circle K® brand by Couche-Tard’s Estonian business unit.

“This acquisition would be a great addition to Couche-Tard’s expansion and growth plans in Europe. Having just added Ireland to our European network and expanded our footprint in Scandinavia with Shell’s retail network in Denmark, Couche-Tard’s declaration in 2012 is becoming a reality: Circle K Europe (formerly Statoil Fuel & Retail AS) is our platform for growth in Europe,” says Jacob Schram, Group President Europe, Couche-Tard.

“Subsequent to this transaction, Couche-Tard’s network in Estonia would grow by 40% and would total 77 company operated-stores and fuel stations. These sites occupy strategic locations within their respective trade areas. This acquisition would be a great complement to our existing network in the Estonian fuel market,” commented Jørn Madsen, EVP Central & Eastern Europe & Ireland, Circle K Europe.

About Alimentation Couche-Tard Inc.

Couche-Tard is the leader in the Canadian convenience store industry. In the United States, it is the largest independent convenience store operator in terms of number of company-operated stores. In Europe, Couche-Tard is a leader in convenience store and road transportation fuel retail in the Scandinavian and Baltic countries with a significant presence in Poland.

As of January 31, 2016, Couche-Tard’s network comprised 7,979 convenience stores throughout North America, including 6,560 stores offering road transportation fuel. Its North-American network consists of 15 business units, including 11 in the United States covering 41 states and four in Canada covering all ten provinces. About 80,000 people are employed throughout its network and at its service offices in North America.

In Europe, Couche-Tard operates a broad retail network across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltics (Estonia, Latvia and Lithuania) and Russia. As of January 31, 2016, it comprised 2,218 stores, the majority of which offer road transportation fuel and convenience products while the others are unmanned automated fuel stations. Couche-Tard also offers other products, including stationary energy, marine fuel and chemicals. Couche-Tard operates key fuel terminals and fuel depots in six European countries. Including employees at franchise stations carrying its brands, about 19,000 people work in its retail network, terminals and service offices across Europe. Since its acquisition of Topaz Energy Group Limited on February 1st, 2016, Couche-Tard also operates a convenience and fuel retailing network comprised of 444 service stations in Ireland as well as a significant commercial fuels operation, with over 30 depots and two terminals.

In addition, around 1,500 stores are operated by independent operators under the Circle K banner in 13 other countries or regions worldwide (China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam).

For more information on Alimentation Couche-Tard Inc., please visit: http://corpo.couche-tard.com.

Contact:

Investor Relations:

Claude Tessier, Chief Financial Officer
Tel: (450) 662-6632, ext. 4607
claude.tessier@couche-tard.com

Media Relations:

Karen Romer, Director, Global Communications
Tel: (514) 603- 4505 –
karen.romer@couche-tard.com

Forward-Looking Statements

The statements set forth in this press release, which describe Couche-Tard’s objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as “will”, “plan”, “evaluate”, “estimate”, “believe”, “expect” and other related expressions are used to identify such statements. Couche-Tard would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Couche-Tard’s actual results and the projections or expectations set forth in the forward-looking statements include the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in margins on motor fuel sales, competition in the convenience store and retail motor fuel industries, exchange rate variations, and such other risks as described in detail from time to time in documents filed by Couche-Tard with securities regulatory authorities in Canada. Unless otherwise required by applicable securities laws, Couche-Tard disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this press release is based on information available as of the date of the release

Source: Alimentation Couche-Tard Inc.

 

 

 

 

 

 

Maxima Eesti owned by MAXIMA GRUPE starts construction of new logistics centre in Harjumma County in Estonia

Vilnius, Lithuania, 2014-10-1— /EPR Retail News/ — Maxima Eesti owned by MAXIMA GRUPE started the construction of a new logistics centre in Harjumma County in Estonia. The total area of the centre, the warehouse and the office will be about 45 thousand square meters and will cost over LTL 100 million. About 350 vacancies will be offered after the construction  is complete in the end of  2015.  On Friday the time capsule was buried at the construction site by Manager of Maxima Eesti Vaidotas Pacesa, the Minister of Economic Affairs and Infrastructure Urve Palo and representatives of Rae municipality and the building company.

‘The business logic and business development in Estonia during the last years became the result of the decision to build a new logistics centre. Until now the part of the storage services in Estonia were bought from local companies and the remaining goods were delivered from Lithuania and Latvia. The new  logistics center will lead to more efficient business development and a faster goods delivery to Maxima stores in Estonia, thus ensuring even greater freshness and quality of the products,’  said MAXIMA GRUPE General Director Neringa Janavičiute.

The new logistics center will be located next to Tallinn bypass road. The location is very convenient for both:  goods delivery by the partners and goods distribution to the stores across the country. ‘We are very pleased that the government, local authorities and business co-operate in the project of this scale developing the surrounding infrastructure and totally reconstructing Tallinn bypass road,’ said Maxima Eesti Managing Director Vaidotas Pacesa. According to him, the company will invest more than LTL 1.7 million in the infrastructure of Rae municipality next to the future logistics center. Maxima also supports local social projects.

The new logistics center will become a central warehouse complex in the country, which will serve all Maxima stores in Estonia. The center will consist of dry and frozen food warehouses, including 13 platforms for acceptance of goods, which will be able to serve about 300 trucks a day. Modern solutions will be implemented in the object:  a special warehouse management system and a temperature controlled goods storage. This will be one of the largest logistics centers built in the country at the same time.

The new logistics center was designed by Nord Projekt As, the general contractor of the project is AS Ehitusfirma Rand  ja Tuulberg, author supervision is performed by As Telora-E. Currently there are 71 Maxima stores operating in Estonia and their number is going to be increased up to 73 by the end of the current year.

Retail companies operating in Lithuania, Latvia, Poland and Bulgaria controlled by MAXIMA GRUPE use their own and leased logistics centers. The warehouse area in Lithuania is over 100 thousand square meters, in Latvia – over than 60 thousand square meters. After this logistics project is implemented in Estonia, the warehouse area of the company in this country will increase to 45 thousand square meters.

MAXIMA GRUPE is a holding company set up in 2007, managing retail companies in Lithuania, Latvia, Estonia, Poland and Bulgaria. In all the countries MAXIMA GRUPE operates 511 stores: Maxima X, Maxima XX, Maxima XXX, Aldik, T-Market. Lithuania operates 228 stores, Latvia – 145, Estonia – 71, Bulgaria – 42, Poland – 25.  In 2013 the turnover of consolidated MAXIMA GRUPE was LTL 8.699 billion excluding VAT.