Acquisition of Intersport operations in Russia concluded
The subsidiary established by Kesko for INTERSPORT sports retailing in Russia is starting its operations.
At the initial stage, the company operates 12 sports stores in the St. Petersburg and Moscow regions. The company intends to increase the number of its sports stores to 36 by the end of this year.
The Kesko subsidiary has acquired 12 INTERSPORT sports stores, including support functions required in the operations, from companies also engaging in INTERSPORT operations in the St. Petersburg and Moscow regions.
Moreover, by the end of this year, the company is due to acquire the 24 stores left to the companies after the acquisition concluded today. Most of these stores are also located in the St. Petersburg and Moscow regions.
In the future, the objective is to at least double the INTERSPORT store site network by the end of 2015.
Kesko owns 80% and Melovest Ltd 20% of the company. The company shareholders, Kesko and Melovest, provide funds to the company operations in proportion to their ownership interests.
Kesko will increase vigorously its operations in Russia. Kesko Food will expand its operations by constructing new stores. The capital expenditure is estimated at €300 million in 2011-2015. At the same time with greenfielding, Kesko Food will continue to explore business acquisition opportunities in both St. Petersburg and Moscow.
Rautakesko has currently 13 K-rauta stores in Russia, ten of which are located in St. Petersburg and three in nearby areas of Moscow. There are two K-rauta stores under construction, which will be opened in Moscow in late 2011. The plan is to open ten more new K-rauta stores in 2012-2015. The capital expenditure will be some €300 million.