Finland: Kesko Food to buy Suomen Lähikauppa for $64m
Kesko's subsidiary Kesko Food, which operates a network of store chains in Finland, has agreed to purchase the whole share capital of c-store chain Suomen Lähikauppa Oy for $64m from private equity investment firm Triton, according to a company release.
The acquisition, structured as a share purchase, is in line with Kesko’s strategy to grow in the grocery market amid tough competition and weakening consumers’ purchasing power.
“One of the focus areas for growth is to increase and renew the neighbourhood store network. We want to develop the accessibility, quality and price competitiveness of neighbourhood retail services that suit Finnish consumers,” said Kesko president and CEO Mikko Helander.
Suomen Lähikauppa, which operates 643 Siwa and Valintatalo stores and employs 4,100 people, has “a long established focus on neighbourhood retailing and (possesses) special expertise and experience in (the) market”, said Suomen Lähikauppa president and CEO Ralf Holmlund.
The acquisition and other related transactions, which are expected to be finalized in the first half of 2016, are still subject to the approval of Finnish Competition and Consumer Authority and the fulfilment of the other terms and conditions.