Rautakesko Ltd, a Kesko Corporation subsidiary, has received the approval of the Russian competition authorities to acquire the St. Petersburg DIY store chain Stroymaster. The deal was completed today, 28 July 2005.
On 17 March 2005, Rautakesko made an agreement to acquire the total share capital of the Stroymaster chain from 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. 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 five DIY stores in the St. Petersburg city area. In addition, Rautakesko is planning to establish bigger outlets modelled on the K-rauta concept in St. Petersburg and possibly in other parts of Russia. Two sites have been purchased in St. Petersburg with the intention of opening two stores modelled on the K-rauta concept in 2006.
Kesko published stock exchange releases about the Stroymaster project on 30 July 2004 and on 17 March 2005.
Jari Lind, President, Rautakesko Ltd, tel. +358 1053 20200
Ilkka Sinkkonen, Country Manager for Russia, Rautakesko Ltd, tel. +709 5764 0838
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