KESKO PRESS RELEASE 20.06.2017 AT 12.35 1(2)
Kesko to sell Indoor Group Oy, responsible for Asko and Sotka
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.
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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
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Source: Kesko Oyj via Globenewswire