RAUTAKESKO HAS SIGNED A LETTER OF INTENT ON EXPANSION TO THE LITHUANIAN MARKET

Kesko Corporation’s subsidiary Rautakesko Ltd has signed a letter of intent regarding the anticipated acquisition of the majority shareholding in UAB Senuku Prekybos Centras, Lithuania’s biggest trader of hardware and building supplies. The counterparty is UAB Senuku Prekybos Centras’ owner Augustinas Rakauskas. The aim is to have the deal concluded by the end of the year 2002, after the due diligence audit has been made at the company.

UAB Senuku Prekybos Centras (Senukai) is the market leader in the Lithuanian building supplies and DIY trade. In 2001, Senukai’s net sales totalled over EUR 100 million and its market share in Lithuania exceeded 20%. In recent years, Senukai’s sales growth and profitability have been very good. The company has large stores in Kaunas and Vilnius, a central warehouse in Kaunas and a nationwide logistics and wholesale network. Senukai also has a network of 52 franchising stores covering the entire Lithuania.

In 2001, Rautakesko’s net sales totalled EUR 746 million, of which 13.9% came from outside Finland. Rautakesko has the chains of 47 K-rauta stores and 100 Rautia stores operating in Finland as well as nationwide industrial and constructor sales. In Finland, the market share of Rautakesko’s chains is about 34%. At present, Rautakesko runs 11 K-rauta stores in Sweden, where the newest retail stores were opened in Göteborg and Södertälje this year. In Estonia, Rautakesko is the market leader. The next K-rauta there will be opened in Habersti, Tallinn in August, when the other Ehitusmaailm outlets in Estonia will also be changed into K-rauta stores. In Latvia, the first K-rauta store was opened in Riga at the beginning of May.

Rautakesko’s strategic objective is to become the market leader in the Nordic and Baltic countries. If the letter of intent now made leads to the final agreement, Rautakesko will become the market leader in the Baltic countries.

Further information:
Rautakesko Ltd, President Matti Halmesmäki, tel. +358 1053 20200
Rautakesko Ltd, Executive Vice President Simo Manner, tel. +358 500 407 455

KESKO CORPORATION
Corporate Communications

Atte Kaksonen
Manager

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