KESKO PURCHASES A HARDWARE STORE CHAIN IN ESTONIA

Kesko has signed a preliminary agreement to acquire Estonia’s largest hardware store chain, Ehitusmaailm. Kesko will purchase 95.7 percent of the share capital of AS Fanaal, the owner of the chain. Kesko will also make a bid for the rest of the shares. Fanaal owns five hardware stores in Estonia and one in Latvia. The total net sales of AS Fanaal in Estonia and Latvia amounted to about FIM 300 million (EUR 50 million) last year. The final deal will be concluded by the end of April.

The purchase of Ehitusmaailm is part of Kesko’s internationalisation strategy, in accordance with which Kesko aims at expanding its hardware store operations in the Nordic and Baltic countries. Kesko has six K-rauta stores in Sweden and the purpose is to build a network of about 25 K-rauta stores operating in Sweden.

For further information, please contact Vice President Paavo Moilanen, telephone +358 1053 20410, or Director Simo Manner, telephone +358 1053 20123.

Kesko Corporation

Corporate Communications

Erkki Heikkinen

Director

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