Kesko Corporation’s subsidiary Rautakesko Ltd has today concluded the deal on the acquisition of a majority in Lithuania’s largest hardware and building supplies company UAB Senuku Prekybos centras from Augustinas Rakauskas and his family. The letter of intent regarding the deal was signed in June 2002. Part of the purchase price is fixed and part of it will depend on results in 2003 and 2004. Present owners will have a shareholding of over 49 percent in the company and Arturas Rakauskas will continue as the President of the company. The deal is estimated to have a positive effect on Rautakesko’s results.

UAB Senuku Prekybos centras (Senukai) is the market leader in the Lithuanian building supplies and DIY (Do It Yourself) trade with a market share of about 25 percent. In 2002, Senukai’s net sales totalled over EUR 150 million. Senukai’s customers include consumers and professional customers alike. During the last few years, Senukai’s growth and profitability have been good. At the end of 2002, the company had about 2,300 employees.

Senukai’s own large-scale outlets are located in Kaunas and Vilnius, and it operates a nationwide logistics and wholesale network. Senukai also has a franchising network of 62 stores throughout Lithuania and one store of its own in Riga, Latvia. Senukai has a central warehouse in Kaunas.

In addition to Finland, Rautakesko currently operates with the K-rauta concept in Estonia, Latvia and Sweden. Rautakesko’s strategic objective is to become the market leader in the Nordic and Baltic countries. The completion of this deal will make Rautakesko the market leader in the Baltic hardware and builders’ supplies trade. In 2002 Rautakesko’s net sales amounted to EUR 735 million, of which foreign subsidiaries accounted for about 17%.

Kesko has published stock exchange releases on this subject on 27 June 2002 and 22 January 2003.

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

Corporate Communications

Atte Kaksonen

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