Rautakesko to acquire St. Petersburg DIY chain Stroymaster
Kesko Corporation's Board of Directors today approved an agreement in which Rautakesko Ltd, a Kesko Corporation subsidiary, has agreed to acquire the total share capital of the company that owns the St. Petersburg DIY store chain Stroymaster. The seller is the Teks group of St. Petersburg. The price is EUR 19.6 million at the maximum, of which the part tied to the results for the first 12 months is EUR 6.9 million at the maximum.
Stroymaster is one of the major DIY (Do-It-Yourself) store chains in the St. Petersburg area. Its market share is about 20% of the total sales effected through DIY chains. In 2004, the net sales of the Stroymaster chain totalled EUR 49.0 million, representing an increase of 27% over the previous year.
At present, the Stroymaster chain includes 4 DIY stores in the St. Petersburg city area and the fifth is being constructed. In addition, the chain is planning to establish bigger outlets modelled on the K-rauta concept in St. Petersburg and possibly in other parts of Russia.
The entry into the force of the deal is subject to the approval of the Russian competition authorities and the fulfilment of the other conditions of the deal.
In 2004, Rautakesko’s net sales totalled EUR 1,150 million, 36.4% of which was generated from outside Finland. In Finland, Rautakesko operates a chain of 42 K-rauta stores and a chain of 104 Rautia stores and a nationwide B-to-B Service unit. In Sweden, Rautakesko currently has 11 K-rauta stores. In Estonia and Lithuania, Rautakesko is the market leader in the hardware and builders’ supplies trade. In Latvia, Rautakesko has one K-rauta store in Riga and a wholesale network covering the whole country.
Kesko published a stock exchange release about the project on 30 July 2004.
Further information:
Rautakesko Ltd, President Jari Lind, tel. +358 1053 20200
Rautakesko Ltd, Executive Vice President Mikael Forss, tel. +358 500 909 005
KESKO CORPORATION
Corporate Communications
Erkki Heikkinen
Senior Vice President
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