Kesko Corporation to sell Indoor Group to Sievi Capital Oyj for €67 million

Helsinki, 2017-Jun-23 — /EPR Retail News/ — Kesko Corporation has signed an agreement to sell Indoor Group, which is responsible for the Asko and Sotka furniture trade chains, to a company owned by Sievi Capital Oyj, three franchising entrepreneurs from the Sotka chain and Etera Mutual Pension Insurance Company. The debt free price of the sale, structured as a share transaction, is €67 million.

“Kesko’s strategic objective is to achieve growth in the Finnish grocery trade, growth and expansion within the building and technical trade in Europe as well as growth in the car trade. The divestment of Indoor Group is a coherent step in the implementation of Kesko’s strategy,” says Mikko Helander, President and CEO of Kesko Corporation.

In 2016, the net sales of Indoor Group were €187 million and the operating profit was €9.8 million. In addition to webstores, the Asko chain has 34 stores in Finland and 5 in Estonia, whereas the Sotka chain has 52 stores in Finland and 5 in Estonia. The sofa factory Insofa Oy in Lahti, Finland, and the Estonian subsidiary Indoor Group AS are also part of Indoor Group.

The debt free price of the divestment is €67 million of which €62 million will be paid in cash upon completion of the transaction and €5 million as an interest bearing loan that the seller grants to the buyer. When the transaction is completed, Kesko Corporation will record a profit of €15 million on the divestment. The transaction will be completed on 30 June 2017.

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 some 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
EVP
CFO
tel. +358 105 322 113
jukka.erlund@kesko.fi

Investors and analysts:
Kia Aejmelaeus
VP Investor Relations
tel. +358 105 322 533
kia.aejmelaeus@kesko.fi

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

Source: Kesko Corporation

Kesko Corporation sold its K-maatalous business to Swedish Lantmännen

Helsinki, 2017-Jun-02 — /EPR Retail News/ — Kesko Corporation has sold its K-maatalous business to Swedish Lantmännen ek för. The debt free price of the sale, structured as a share transaction, was €38.5 million.

Kesko’s strategic objective is to achieve growth in the Finnish grocery trade, the building and technical trade and the car trade.

In 2016, the net sales of the K-maatalous business operations were €334 million and the operating profit was €5.3 million. The debt free price of the sale, structured as a share transaction, was €38.5 million and was paid in cash upon completion of the transaction. Kesko Corporation will record a profit of approximately €13 million on the disposal in the second quarter financial results for 2017. K-maatalous stores will continue operating under the retailer business model with Lantmännen.

On 11 April 2017, Kesko Corporation announced that it will sell its K-maatalous business in a stock exchange release. On 26 May 2017, the Finnish Competition and Consumer Authority (FCCA) announced that it will approve the disposal. The approval will not be subject to any conditions.

The disposal will not have an impact on Kesko Group’s outlook.

Further information:

Investors and analysts:
Kia Aejmelaeus
VP
Investor Relations
tel. +358 105 322 533
kia.aejmelaeus@kesko.fi

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

Source: Kesko Corporation