In March of this year, Kesko and Oriola announced their intention to establish a new store chain specialising in comprehensive wellbeing. Finland’s Competition and Consumer Authority approved the establishment of the joint venture on 26 June 2017 and the establishment of the company has now been finalised. Both parties own 50 per cent of the new company.
The first phase objective is to build a chain of 100 stores and an online store. The plan is to expand the business to include pharmaceuticals if the legislation is amended. Approximately 15 stores will open by the end of 2017. The new chain is estimated to create 1,000 new jobs in Finland.
“Together with Oriola we will build a leading health, beauty and wellbeing chain that Finns can trust. Kesko has extensive experience in the grocery trade and a strong K consumer brand. Oriola, for its part, is a highly valued distributor of health and wellbeing products and an expert in the pharmaceutical sector. We will announce the chain's name, concept and the location of the first stores in the next few months,” says Jorma Rauhala, Kesko's Executive Vice President and Senior Vice President for the grocery trade.
“We are delighted that the establishment of the joint venture has now been finalised and its operation can begin. The preparations of the joint venture´s operation together with Kesko have proceeded extremely well and the first stores will be opened in the autumn,” says Kimmo Virtanen, Oriola´ s Executive Vice President.
In the first phase, Kesko and Oriola will make a total investment of approximately €25 million in the joint venture.
Kesko and Oriola announced the joint venture with a stock exchange release on 13 March 2017. The future company’s management group will be that, which was named during the spring. Finland’s Competition and Consumer Authority gave permission to establish the company on 26 June 2017.
Karoliina Partanen, Vice President, Communications, Kesko grocery trade, +358 40 584 5298
Leena Lahti, Communications Manager, Oriola Oyj, puh. 050 367 3304, e-mail: firstname.lastname@example.org