Indoor Group with its chain concepts is a leading home furniture and interior furnishing retailer in Finland and its neighbouring areas. The group consists of two well-known and complementary retailing chains Asko and Sotka and its subsidiaries are Indoor Group AS in Estonia and the Finnish upholstery factory Insofa Oy.
Group net sales in 2016 were EUR 186,7 million and the number of employees was over 600.Kesko Corporation has signed an agreement to sell Indoor Group, which is responsible for the Asko and Sotka furniture trade chains, to a company owned by Sievi Capital Oyj, three franchising entrepreneurs from the Sotka chain and Etera Mutual Pension Insurance Company. The debt free price of the sale, structured as a share transaction, is €67 million.
“Kesko’s strategic objective is to achieve growth in the Finnish grocery trade, growth and expansion within the building and technical trade in Europe as well as growth in the car trade. The divestment of Indoor Group is a coherent step in the implementation of Kesko’s strategy,” says Mikko Helander, President and CEO of Kesko Corporation.
In 2016, the net sales of Indoor Group were €187 million and the operating profit was €9.8 million. In addition to webstores, the Asko chain has 34 stores in Finland and 5 in Estonia, whereas the Sotka chain has 52 stores in Finland and 5 in Estonia. The sofa factory Insofa Oy in Lahti, Finland, and the Estonian subsidiary Indoor Group AS are also part of Indoor Group.
The debt free price of the divestment is €67 million of which €62 million will be paid in cash upon completion of the transaction and €5 million as an interest bearing loan that the seller grants to the buyer. When the transaction is completed, Kesko Corporation will record a profit of €15 million on the divestment. The transaction will be completed on 30 June 2017.