Kesko Corporation's subsidiary Byggmakker Handel AS has signed an agreement to acquire Skattum Handel AS, a Norwegian operator in the building and home improvement trade with net sales of approximately €94 million in 2017. Skattum Handel AS currently operates Byggmakker stores under the retailer business model.
K Group is a leading operator in Northern Europe in building and technical trade. Kesko’s Byggmakker store chain is one of the leading operators in the building and home improvement trade in Norway and has now agreed to acquire Skattum Handel AS. Skattum Handel AS operates 10 Byggmakker stores around the Oslo area and employs some 320 professionals. In 2017, the company made €4.3 million in operating profit. The parties do not disclose the transaction price.
In the building and technical trade, Kesko’s strategic objective is to strengthen its market position in Northern Europe and improve profitability in all operating countries.
"The acquisition is an important step in the implementation of our strategy to grow and develop our market position in Northern Europe. In Norway, the acquisition gives us an opportunity for enhanced synergies in e.g. sourcing and thus increases the competitiveness of our operations – creating an even greater opportunity for growth and increased profitability,” says Jorma Rauhala, President of Kesko’s building and technical trade division and deputy to Kesko's President and CEO.
K Group’s building and technical trade division operates in eight countries. In Norway, the division operates 25 Onninen stores and 65 Byggmakker stores, which mostly operate under the retailer business model. In 2017, Byggmakker Norway’s net sales were €397 million.
Skattum Handel AS operates Byggmakker stores in the counties of Hedmark, Oppland, Oslo and Akershus. In addition, it owns 34% of Byggmakker Hønefoss. Recently Skattum Handel AS celebrated its 125th anniversary.
The completion of the acquisition is subject to the approval of the Norwegian competition authorities and the fulfilment of the other terms and conditions of the transaction.
Jessica Diktonius, Vice President, Communications, K Group's building and technical trade, +358 40 709 9176, email@example.com
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