Lantmännen acquires the Finnish agricultural company K-maatalous from listed Kesko Group. The purpose of the acquisition is to establish a greater presence in the grain value chain on the Finnish market and to develop in the Baltic Sea region, which is in line with Lantmännen's growth strategy.
K-maatalous is one of the largest operators in the Finnish agricultural market with a turnover of more than 300 million Euro. K-maatalous has a strong position within Finnish agriculture and operates in four business areas: plant production, animal feed, grain as well as implements for agricultural machines. The acquisition of the K-maatalous business enables Lantmännen to broaden its offering in the Finnish market and there is also potential for future synergies.
“Lantmännen acquires K-Maatalous in order to grow and to further develop its position in the grain value chain in the Baltic Sea region. The acquisition is an important part of the implementation of Lantmännen's Baltic Sea strategy. It gives us an opportunity to grow and develop in our neighboring country, where Lantmännen already has large holdings, primarily in the baking and maltsters industries”, says Per Olof Nyman, Group President and CEO at Lantmännen
K-maatalous operates through local retailers established across Finland, mainly in the strong agricultural areas in the south and southwest of the country. The customers are mainly farmers and contractors. K-maatalous has 45 employees which will follow with the transaction.
“This is an important strategic decision enabling development and growth. K-maatalous has a strong product portfolio and many well established brands. We have cooperated with the Kesko Group for over 50 years in the plant breeding and seed business, and through this acquisition, we will be established on the Finnish market, says Elisabeth Ringdahl, Division Manager at Lantmännen's agricultural division.
Kesko Group sells their agricultural business in order to focus on their core business.
“Kesko Group welcomes the deal. Lantmännen, with their expertise from field to fork and their experience in the agricultural field, will bring knowledge that will enable us to develop the business, says Mikko Helander, Kesko's President and CEO.
The transaction is expected to be completed during the third quarter of 2017, after approval from the competition authorities.
For more information, please contact:
Peter Annas, Director Seeds and Commodities, Lantmännen +46 (0)706-99 03 65
Elisabeth Ringdahl, Division Manager, agriculture sector, Lantmännen +46 (0)725-46 46 35
Press office: +46 (0)73-046 58 00
K-maatalous is part of Kesko’s agricultural and machinery trade unit, which belongs to the building and technical trade division. In Finland, agricultural customers are served by the comprehensive K-maatalous store network. K-maatalous retailers’ customers include agricultural entrepreneurs, machinery contractors, as well as equestrian professionals and enthusiasts. Many K-maatalous stores operate in connection with K-Rauta stores.
Kesko and K-retailers form K Group, whose sales total over €13 billion. K Group is the third largest retail operator in Northern Europe and it employs approximately 45,000 people. Kesko operates in the grocery trade, the building and technical trade and the car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. Kesko's net sales are €10 billion and it employs approximately 30,000 people. Kesko has over 2,000 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia, Belarus and Poland. Kesko is a listed company and its shares are listed on Nasdaq Helsinki. The company's domicile and main business premises are in Helsinki. Kesko is the world's most responsible trading sector company (The Global 100 Most Sustainable Corporations in the World). www.kesko.fi