Finland Times

 

Mikko Helander, President and CEO of Kesko spoke at a press conference on Wednesday. Photo – Str / Lehtikuva.

The ownership of the retail chain shops Siwa and Valintatalo is being transferred to Kesko, as Ruokakesko has acquired Suomen Lähikauppa (Finnish Convenience Stores) from the private equity investor Triton. 

 

The debt-free acquisition price is approximately 60 million euros, according to a statement from Kesko.

 

The Suomen Lähikauppa chain consists of 643 Siwa and Valintatalo stores, employing 4,100 people.

 

Kesko is seeking growth in the grocery trade, and one of the priorities is to increase the number of local stores, Kesko CEO Mikko Helander said in the statement.

 

The purchase also allows, according to Helander, significant synergy benefits.

 

“Suomen Lähikauppa has excellent locations, and through this acquisition we will be able to implement our strategy ahead of schedule with significantly lower investments. Competition in the Finnish grocery trade is intense, and the loss of consumer purchasing power has further intensified it,” said Helander.

 

Suomen Lähikauppa’s trade turnover last year was slightly less than one billion euros, a loss before taxes of 11.6 million euros.

 

The transaction requires the approval of the Competition and Consumer Agency, and it is expected to take place early next year.