Kesko Corporation's joint venture in the Baltics, Kesko Senukai, has agreed to acquire 1A Group, one of the leading online retail market players in the Baltic states, with net sales of approximately €41 million in 2017. The acquisition of 1A Group will make Kesko Senukai one of the leading e-commerce operators in the Baltics with online operations in Estonia, Latvia and Lithuania. The parties do not disclose the transaction price.
Kesko’s strategic objective in the building and technical trade is to strengthen its market position in Northern Europe and improve profitability in all operating countries. By acquiring 1A, Kesko will gain a strong foothold in the Baltic countries’ growing ecommerce market.
"The e-commerce market in the Baltics is fast growing and strongly outpacing brick-and-mortar retailing. With this acquisition, we will become the largest omnichannel player in the Baltics and can serve our customers via our comprehensive store network as well as growingly online. 1A complements the existing online sales of Kesko Senukai Digital especially in Latvia and Estonia, providing us a comprehensive e-commerce platform to serve the whole Baltic market,” says Jorma Rauhala, President of Kesko’s building and technical trade division and deputy to Kesko's President and CEO.
1A Group was founded in 2002 and has grown into one of the leading online retail market players in the Baltic states. The company started as an electronics online retailer, but has since transformed into a multi-industry product online retailer.
K Group’s building and technical trade division operates in eight countries and growingly online. Kesko Senukai is the leading Do-It-Yourself retail company in the Baltics and operates 22 K-Senukai stores in Lithuania, 9 K-Senukai stores Latvia, 8 K-Rauta stores in Estonia and 17 Oma stores in Belarus as well as a successful e-commerce platform.
The completion of the acquisition is subject to the approval of the local competition authorities and the fulfilment of the other terms and conditions of the transaction. The transaction is expected to be completed during the second half of 2018.
Jorma Rauhala, President of the building and technical trade division of Kesko Corporation and Deputy to President and CEO of Kesko Corporation, tel. +358 105 322 211, firstname.lastname@example.org
Jessica Diktonius, Vice President, Communications, K Group's building and technical trade, +358 40 709 9176, email@example.com
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