Kesko accelerates turnaround in Sweden – divests Onninen’s HEPAC business segment to fully focus on Onninen’s infrastructure business
Kesko Corporation has signed an agreement to sell Onninen AB’s HEPAC business segment to Solar A/S. The segment serves mostly SME contractor clients in Sweden. The transaction allows Kesko to focus on building-related B2C and B2B trade and the infrastructure business in technical trade in Sweden.
K Group is a leading operator in Northern European building and technical trade with operations in eight countries. In 2018, the building and technical trade division’s net sales in Northern Europe totalled €4.1 billion. In Sweden, the building and technical trade division operates 17 K-rauta stores, one K Bygg & Grund store and 13 Onninen Express stores and employs 1,000 professionals. Net sales of Onninen AB’s HEPAC business segment in Sweden totalled €70 million in 2018.
In the building and technical trade, Kesko’s strategic objective is to strengthen its market position in Northern Europe and improve its profitability in all operating countries. In an effort to accelerate a turnaround in Sweden and focus fully on the growing Onninen infrastructure business, the company has decided to sell Onninen AB’s HEPAC business segment to Solar A/S. The parties do not disclose the transaction price.
“Sweden is overall the biggest single market for the building and technical trade and investments in infrastructure in Sweden are on the rise. The announced deal supports our long-term strategy and gives us the opportunity to fully focus on building-related B2C and B2B trade and the infrastructure business in technical trade in Sweden,” says Jorma Rauhala, President of Kesko’s building and technical trade division and Deputy to Kesko's President and CEO.
Onninen’s HEPAC business segment employs some 80 professionals in Sweden, who will transfer to the buyer together with 12 Onninen Express stores. Onninen will continue to serve its infrastructure customers nationwide in Sweden through multiple channels, including its professional project sales organisation, effective logistics and comprehensive eCommerce solutions.
The completion of the acquisition is subject to the approval of the Swedish competition authorities and the fulfilment of the other terms and conditions of the transaction.
Jorma Rauhala, President of the building and technical trade division, Deputy to President and CEO of Kesko Corporation, tel. +358 105 322 211, firstname.lastname@example.org
Media: Jessica Diktonius, Director, Communications, K Group's building and technical trade, +358 40 709 9176, email@example.com
Analysts: Kia Aejmelaeus, Vice President, Investor Relations, tel. +358 105 322 533, firstname.lastname@example.org
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