Kesko to sell its Baltic machinery trade subsidiaries’ shares and Konekesko Finland’s agricultural machinery trade operations to Danish Agro Group
Danish Agro Group has used its call options announced in February 2017 to buy the remaining shares in Konekesko Ltd’s Baltic subsidiaries and its agricultural machinery trade operations in Finland. As a result, Danish Agro Group becomes the full owner of Konekesko Baltic companies and Konekesko’s agricultural machinery operations in Finland.
In February 2017 Konekesko Ltd sold 45% of its Baltic subsidiaries' shares to Danish Agro a.m.b.a.'s Group company DAVA Agravis Machinery Holding A/S. In the same context, an agreement was made on options to expand DAVA Agravis' ownership to include the whole share capital of the Baltic machinery trade companies and Danish Agro Group's ownership to include Konekesko's agricultural machinery business in Finland.
With the announced acquisition, the parties agreed on the transfer of the remaining 55% of shares of Baltic companies and of the takeover of Konekesko agricultural machine operations in Finland.
Konekesko is a part of Kesko’s building and technical trade division.
“Kesko’s strategic objective within building and technical trade is to strengthen its market position in Northern Europe and improve profitability in all operating countries. This transaction is a consistent step forward from the arrangement made in 2017. As a result of this divestment, building and technical trade division will be a more focused and can further seek opportunities for growth and improved profitability in Northern Europe,” comments Jorma Rauhala, President of Kesko’s building and technical trade division and deputy to Kesko's President and CEO.
In 2017, the pro forma net sales of the Baltic functions were approximately €133 million and Konekesko’s agricultural machinery business 32 million.
The transactions are expected to be completed in October 2018. The completion of the transactions is subject to the approval of the competition authorities and the fulfilment of the other terms and conditions of the transactions.
Jukka Erlund, Executive Vice President, Chief Financial Officer, Kesko Corporation, tel. +358 105 322 113, firstname.lastname@example.org
Jarkko Karjalainen, Vice President, M&A, Kesko Corporation, tel. +358 50 340 8174, email@example.com
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