KESKO CORPORATION STOCK EXCHANGE RELEASE 14.11.2016 AT 09.15 1(3)
Kesko to acquire AutoCarrera - Porsche representation transfers to VV-Auto
Kesko Corporation's subsidiary VV-Auto Group Oy has signed an agreement to acquire the whole share capital of Oy AutoCarrera Ab. The company being acquired is responsible for importing and retailing Porsche in Finland. In 2015, the net sales of Oy AutoCarrera Ab being acquired were €49 million and the operating profit was €3.3 million. The price of the acquisition, structured as a share purchase, is approximately €27 million.
The car trade is one of Kesko's strategic growth areas. The acquisition expands VV-Auto's cooperation with Volkswagen AG. Currently VV-Auto is responsible for the import of Volkswagen, Audi, SEAT and MAN and it operates as a significant car retailer at its own outlets in the Greater Helsinki area and Turku. The addition of Porsche to the selection will increase sales and improve the profitability of the car trade.
"The acquisition of Porsche brings one of the world's most highly valued car brands to the K-Group and our offering expands to include new models and new customer groups. Porsche sales have experienced strong global growth as its range of models has widened. Porsche is intensively investing also in its hybrid and electric models. Therefore we see that Porsche's position in the car market will strengthen significantly in the coming years," says Kesko's President and CEO Mikko Helander.
"Porsche's good market share performance and investment in customer service are secured long into the future in Kesko, one of whose strategic growth areas is the car trade. AutoCarrera has operated in Finland for 18 years already and we are pleased that the operations will continue and will be developed with the resources of the new owner," says Pekka Pättiniemi, the Chair of the AutoCarrera Board.
AutoCarrera is a family business whose owners include private persons, Four P&P Consulting Oy and Oy Olisystems Ab. Porsche's retail and service operations in Finland are located in Helsinki, Turku and Tampere. The company employs 36 people.
Financial impacts of the acquisition
In 2015, Oy AutoCarrera Ab's net sales were €49 million and the operating profit was €3.3 million. At the closing of the transaction, approximately €25 million will be paid in cash and a possible credit facility. In addition, as the terms and conditions of the acquisition agreed by the parties are fulfilled, approximately €2 million will be paid at a later date.
The acquisition to be paid in cash will be funded by Kesko's liquid assets and available debt financing reserves.
The acquisition does not have an impact on Kesko Group's outlook.
The completion of the acquisition is subject to the approval of the competition authorities and the fulfilment of the other terms and conditions of the transaction. The acquisition is estimated to be completed within the year 2016.
Oy AutoCarrera Ab's profit performance and financial position
| INCOME STATEMENT | 1.1. - 31.12.2015 | 1.1. - 31.12.2014 |
| Net sales | 48.7 | 37.5 |
| Other operating income | 0.1 | 0.0 |
| Cost of goods sold | -41.1 | -32.4 |
| Gross profit | 7.7 | 5.1 |
| Employee benefit expenses | -2.3 | -2.0 |
| Other operating expenses | -1.9 | -1.8 |
| EBITDA | 3.5 | 1.3 |
| Depreciation, amortisation and impairment | -0.2 | -0.2 |
| Operating profit | 3.3 | 1.1 |
| Finance income and expenses | -0.4 | -0.1 |
| Profit before tax | 2.9 | 1.0 |
| Income tax | -0.6 | -0.2 |
| Profit for the period | 2.3 | 0.8 |
| BALANCE SHEET | 31.12.2015 | 31.12.2014 |
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | 0.4 | 0.3 |
| Tangible assets | 0.3 | 0.3 |
| Investments | 0.0 | 0.2 |
| Total non-current assets | 0.7 | 0.9 |
| Current assets | ||
| Inventories | 6.2 | 5.9 |
| Trade receivables | 1.7 | 2.2 |
| Other receivables | 0.2 | 0.6 |
| Cash and cash equivalents | 0.0 | 0.1 |
| Total current assets | 8.2 | 8.8 |
| TOTAL ASSETS | 8.9 | 9.6 |
| EQUITY AND LIABILITIES | ||
| Total equity | 3.8 | 1.7 |
| Non-current liabilities | ||
| Interest-bearing liabilities | 1.9 | 3.6 |
| Advances received | 0.9 | 0.5 |
| Trade payables | 0.4 | 0.8 |
| Other non-interest-bearing liabilities | 1.8 | 2.9 |
| Total current liabilities | 5.0 | 8.0 |
| TOTAL EQUITY AND LIABILITIES | 8.9 | 9.6 |
Kesko will hold a briefing on the acquisition today at 11.00 at Tapahtumatalo Bank, Unioninkatu 20, Helsinki.
Further information: Pekka Lahti, EVP, car trade division, tel. +358 50 383 7663, pekka.lahti@vv-auto.fi Lauri Peltola, EVP, communications, corporate responsibility and stakeholder relations, tel. +358 105 322 400, +358 505 705 606, lauri.peltola@kesko.fi Jukka Erlund, EVP, Chief Financial Officer, tel. +358 105 322 113, jukka.erlund@kesko.fi
Kesko Corporation
DISTRIBUTION NASDAQ OMX Helsinki Ltd Main news media www.kesko.fi
Kesko is a Finnish listed trading sector company. 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 were €9 billion (rolling 12 months, 1 July 2015 - 30 June 2016) and as at 30 June 2016, it employed around 30,000 people. Kesko has over 1,500 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Russia, Belarus and Poland. Kesko's shares are listed on Nasdaq Helsinki. The company's domicile and main premises are in Helsinki. Kesko is the world's most sustainable trading sector company (The Global 100 Most Sustainable Corporations in the World). www.kesko.fi
VV-Auto imports and markets Volkswagen, Audi and SEAT passenger cars, Volkswagen commercial vehicles and MAN trucks and buses in Finland and it also imports and markets SEAT cars in Estonia and Latvia. VV-Auto is also a major car retailer at its own outlets in the Greater Helsinki area and Turku. A comprehensive dealer and service network that covers all of Finland serves VV-Auto's passenger car and commercial vehicle customers. At the end of 2015, VV-Auto employed 783 people.
AutoCarrera
AutoCarrera imports and markets Porsche sports cars in Finland. AutoCarrera operates with three exclusive outlets in Helsinki, Tampere and Turku, providing car sales, service and spare parts.
