Feb. 28 - Kesko Corporation and Aspo plc today signed an agreement by which Aspo acquires the share capital of Kauko-Telko Ltd, a subsidiary wholly owned by Kesko. The debt-free selling price is about 76 million euros, based on Kauko-Telko's year-end balance sheet. The price will be specified at the completion date. Upon completion of the transaction, Kesko will recognise a non-recurring gain of about 31 million euros on the disposal.
Kesko pursues a strategy of healthy, focused growth concentrating on sales and services to consumer-customers. Kauko-Telko engages in international technical trade with the manufacturing industry and public and private utilities as its key customer groups. Kauko-Telko's synergies with Kesko's other business operations have been few.
In 2007, Kauko-Telko's net sales were €234 million, and the operating profit excluding non-recurring items was €9.9 million. Kauko-Telko employed an average of 484 people in 2007. The company being sold will continue operating normally after the change of ownership.
The completion of the transaction is subject to the approval of competition authorities. The transaction is expected to be completed during the second quarter of this year.
Kesko published a stock exchange release about the matter on 23 May 2007.
Kesko is a Finnish retail specialist whose stores offer quality to the daily lives of consumers through valued products and services at competitive prices. Kesko has about 2,000 stores engaged in chain operations in the Nordic and Baltic countries, and Russia.
Aspo is a conglomerate operating in three divisions. Chemicals imports and markets industrial chemicals and plastic raw materials, and produces branded automotive chemicals. Shipping handles marine raw material transports for the energy and heavy industry sectors. Systems provides automation systems and maintenance services for service stations.