Kesko to acquire Indoor Group Ltd

Keswell Ltd, a Kesko Corporation subsidiary, has today reached an agreement to acquire Indoor Group Ltd’s shares from Sponsor Fund I Ky and the other shareholders. As a result of the deal, the chain concepts of Indoor Group Ltd, as well as Indoor’s own Asko and Sotka furniture stores in Finland, Sweden, Estonia and Latvia will be transferred to Keswell Ltd’s ownership. The combined value of the share transaction and the liabilities accepted is 83 million euros, excluding finance lease liabilities.

As soon as the deal takes effect, 95% of the shares will be transferred to Keswell and the rest on a later date as agreed in the contract. The deal is subject to the approval of competition authorities and to the fulfilment of other conditions precedent. The deal will have no effect on the position of Indoor Group’s personnel. At the end of September, the total personnel was 726.

Indoor Group Ltd, with its Asko and Sotka store chains, is the market leader in furniture trade in Finland. Asko runs 29 stores in Finland, mainly in major localities. In Sweden, it operates 2 stores in the Greater Stockholm area. In addition, Asko has one store in Estonia and one in Latvia. Sotka has 52 stores in Finland, 3 in Estonia and 1 in Latvia. Indoor Group’s central warehouse is in Finland and it has a logistics centre in Tallinn. Eight of the Asko stores and 32 of the Sotka stores operating in Finland are managed by franchise entrepreneurs. In 2003, Indoor Group’s net sales were 167 million euros and its profitability was good.

The deal enables Kesko and its subsidiary Keswell to considerably strengthen their position in the Finnish home and speciality goods trade in particular. The deal also enhances the product offering of the whole K-Alliance in the interior decoration sector. Currently interior decoration supplies and furniture are sold by Anttila Oy, a Keswell subsidiary, in the Anttila and the Kodin Ykkönen department stores. As soon as the deal takes effect, Indoor Group Ltd becomes an independent subsidiary of the Keswell Group.

Keswell Ltd specialises in the home and speciality goods trade in Finland. Keswell’s biggest subsidiary is Anttila Oy, which operates with four concepts: Anttila department stores, Kodin Ykkönen, Anttila mail order business and netanttila.com. Other Keswell store concepts are Intersport, Kesport, Musta Pörssi, Andiamo, K-kenkä, Kenkäexpertti and Academica. Outside Finland, Kesko operates mail order business in Estonia and Latvia. In 2003, Keswell’s net sales amounted to 726 million euros and it employed a total of about 3,200 persons.

Further information:
Matti Laamanen, President of Keswell Ltd, tel. +358 1053 39100
Pasi Mäkinen, Vice President, Keswell Ltd, tel. +358 1053 39101

KESKO Corporation
Corporate Communications

Erkki Heikkinen
Senior Vice President

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