Kesko to acquire SEAT business from Laakkonen
26 Apr 2019, 19:07 ( 2 Months ago) | updated: 26 Apr 2019, 19:31 ( 2 Months ago)
Kesko Group company K Caara Oy has agreed to acquire the Volkswagen, Audi and SEAT businesses of Laakkonen Group,said the company in a press release.
The combined pro forma net sales of the businesses to be acquired totalled some €259 million in 2018 and operating profit €5.4 million. The 470 employees of the businesses to be acquired will transfer to Kesko.
The transaction comprises Autotalo Laakkonen’s Volkswagen, Audi and SEAT businesses in Hyvinkää, Hämeenlinna, Joensuu, Kuopio, Lahti and Tampere. Kesko will also assume ownership of Veljekset Laakkonen’s SEAT business in Joensuu, Kuopio and Lahti. The transaction includes new and used car sales and car servicing and after-sales services. The businesses will continue to lease their current premises. The parties do not disclose the transaction price.
Kesko’s objective is, in collaboration with the Volkswagen Group, to grow the sales of Volkswagen, Audi, SEAT, Porsche, MAN and – starting next autumn – Bentley in Finland. To achieve the objective, it is important that we establish an even more effective distribution and service network to serve both consumers and corporate customers.
“The car sector is consolidating fast both on a global scale and in Finland. We are very happy with our partnership with the world’s biggest car manufacturer the Volkswagen Group, and we will continue to execute our strategy in close collaboration with them. This transaction is a continuation to the acquisitions of the businesses of Huittisten Laatuauto and LänsiAuto earlier this year. We have collaborated with Laakkonen for many years, and I want to take this opportunity thank them for the good partnership spanning decades,” said Johan Friman, President of Kesko’s car trade division.
The acquisition is subject to approval by the Finnish Competition and Consumer Authority. The transaction is expected to be completed during the third quarter of 2019.