The establishment of Kesko and Oriola's joint venture has been finalised
K GROUP PRESS RELEASE 30.06.2017 AT 10.00 1(2)
First stores and the online store of the new chain specialising in health, beauty and wellbeing will be opened in the autumn 2017.
In March of this year, Kesko and Oriola announced their intention to establish a new store chain specialising in comprehensive wellbeing across Finland. 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 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.
Further information:
Karoliina Partanen, Vice President, Communications, Kesko grocery trade, tel. +358 40 584 5298, e-mail: karoliina.partanen@kesko.fi
Leena Lahti, Communications Manager, Oriola Oyj, tel. +358 50 367 3304, e-mail: leena.lahti@oriola.com
K Group
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 some 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
Oriola
Oriola is a Finnish listed retail and wholesale company that distributes pharmaceuticals and health and wellbeing products. Oriola has a strong position in the pharmaceuticals market in Sweden, Finland and the Baltics. We promote people's wellbeing by ensuring safe and efficient distribution of pharmaceuticals and healthcare consumer products and services to our customers. Oriola's net sales are €1.6 billion, the company has 2,821 employees and 325 pharmacies in Sweden and Latvia. The company is headquartered in Espoo. www.oriola.com
