Kesko Agro Ltd and Mestarifarmi Oy engage in cooperation in the animal husbandry machinery and production building trade

Kesko Agro Ltd and Mestarifarmi Oy have signed an agreement concerning animal husbandry machinery and production building business operations. Kesko Agro Ltd sells these business operations, maintenance and spare parts operations included, to Mestarifarmi Oy. The parties will intensify their cooperation and improve customer service relating to building project implementation. The completion of the deal may be conditional on the approval of the Finnish Competition Authority. The employees of Kesko Agro Ltd’s animal husbandry machinery trade will transfer to Mestarifarmi Oy under their previous employment terms.

 

According to the agreement, the cooperation in the animal husbandry machinery and production building trade between Kesko Agro Ltd and Mestarifarmi Oy will begin on 1 September 2007. At the same time, Kesko Agro Ltd will transfer its product representations of animal husbandry machinery and concrete building to Mestarifarmi Oy. Kesko Agro Ltd will continue the product representations of steel and wooden halls and animal sheds and maneges. Kesko Agro Ltd will focus on purchasing agricultural accessories for the K-maatalous chain, which will continue to sell the transferring product representations while increasing the product offer of different concrete elements.

The arrangement combines the competence of Kesko Agro in the animal husbandry machinery trade and the expertise of Mestarifarmi in concrete construction. This will improve the overall management of animal husbandry building projects and delivery accuracy for the benefit of the customer.

Mestarifarmi Oy is a sales company specialising in animal husbandry production buildings. It is a subsidiary of Betonimestarit Oy and part of the Betonimestarit group. The group has 4 concrete element factories in Finland and 2 in Sweden. The group employs about 300 people and its net sales in 2007 will amount to around 60 million euros.

Mestarifarmi Oy is growing and developing at a brisk pace. In 2007, its net sales will quadruple over the previous year, and its net sales target for 2008 is over 25 million euros.

The K-maatalous chain comprises Kesko Agro Ltd and 100 K-maatalous agricultural stores. Its customers are agricultural entrepreneurs. The K-maatalous chain offers machines, accessories and services for agricultural and forestry production in a reliable, competitive and professional manner, and engages in the grain trade. The chain’s strenghts include comprehensive product selections, services and after-sales operations plus the K-maatalous retailers who are familiar with regional and local circumstances.

Further information is available from:

Seppo Hämäläinen, President, Kesko Agro Ltd, tel. +358 50 310 4090

Antti Ollila, Director, Kesko Agro Ltd, tel. +358 50 552 6936

Kesko (www.kesko.fi) is a Finnish retail specialist whose stores offer quality to the daily lives of consumers through valued products and services at competitive prices. Kesko has about 2,000 stores engaged in chain operations in the Nordic and Baltic countries, and Russia.


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