Kesko to acquire Volkswagen, Audi and SEAT businesses from LänsiAuto

Kesko Group company K Caara Oy has agreed to acquire LšnsiAuto Oy's Volkswagen, Audi and SEAT businesses in Kotka, Kouvola and Lappeenranta.

Kesko's car trade targets growing its business in tight cooperation with the Volkswagen Group.

K-Auto's retail company K-Caara is actively seeking to strengthen its market position in the sales of Volkswagen, Audi and SEAT by expanding its market in Finland.

"The car business is currently consolidating heavily as competition tightens and the companies strive for more efficient operations. The dealerships acquired now will enable us to provide even better and more extensive services to our customers in terms of new and used cars and after sales. The transaction will also strengthen K-Caara's position in Finland as the biggest dealer of brands represented by the Volkswagen Group," says Johan Friman, President of Kesko's car trade division.

LšnsiAuto has grown strongly in recent years, and the company's strategic goal is to strengthen its position in the value chain by acting not only as a car dealer but also as a leasing financer, rental company and importer.

"This transaction excellently suits the strategies of both companies. Our long-term objective is to be a key partner for a couple of principals in Finland and the Baltics. We have acquired the importing of Opel in Finland and the Baltics, and we are currently investing in Toyota and Nissan businesses in the greater Helsinki area," says Tommi KŲninki, CEO of LšnsiAuto.

The pro forma net sales of the businesses to be acquired totalled some EUR67 million in 2017. The employees will transfer to K-Caara and the business operations will continue to lease their current premises. The parties do not disclose the transaction price.

The acquisition is subject to approval by the Finnish Competition and Consumer Authority. It is expected to be completed during the first quarter of 2019.

Further information:

Johan Friman, President, Kesko's car trade division, johan.friman@kesko.fi, tel. +358 10 533 8451

Martti Muona, Managing Director, K Caara Oy, martti.muona@kesko.fi, tel. +358 10 533 3521

Tommi KŲninki, Chief Executive Officer, LšnsiAuto Oy, tommi.koninki@lansiauto.fi, tel. +358 50 545 8515

Kesko Corporation

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www.kesko.fi

K-Auto imports and markets Volkswagen, Audi, SEAT and Porsche passenger cars, Volkswagen Commercial Vehicles and MAN trucks in Finland, and SEAT cars in Estonia and Latvia. K-Auto also develops car-related multichannel services. www.k-auto.fi

K-Auto's retail company K-Caara is a major retailer of new and used vehicles and it offers servicing and after-sales services at its own outlets in the greater Helsinki area and Turku. K-Caara's services also include the online sales of used cars, a store for lower price range used cars and leasing services for companies and private customers. www.k-caara.fi

LšnsiAuto is a growing and developing automotive group that offers car sales, repair, leasing and rental services. The group's business has grown strongly in recent years: in 2019 its net sales will exceed EUR400 million. LšnsiAuto imports Opel to Finland and the Baltics and is the Finnish franchising partner of the world's biggest car rental company.



Published in M2 PressWIRE on Wednesday, 02 January 2019
Copyright (C) 2019, M2 Communications Ltd.


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