Oriola-KD and Kesko to establish a chain of health, beauty and wellbeing stores across Finland

Oriola-KD Corporation Stock Exchange Release 13.3.2017 at 09.00

Oriola-KD and Kesko to establish a chain of health, beauty and wellbeing stores across Finland

Oriola-KD Corporation and Kesko Corporation start building a completely new kind of store chain in Finland, specialising in comprehensive wellbeing. Companies have signed an agreement to establish a joint venture company. The first phase objective is to build a chain of 100 stores and an online store. In estimation 1000 new jobs will be created. First stores and the online store will be opened during the fall 2017. The plan is to expand the business to include pharmaceuticals if the legislation is amended.

Both parties to the agreement will have a 50 per cent ownership interest in the new company to be established. In the first phase, Oriola-KD and Kesko will make a total investment of approximately EUR 25 million in the new company to be established. The first comprehensive wellbeing stores and the online store will be opened in autumn 2017, and the target is to open a total of 15 stores by the end of the year. In the first phase, the aim is to build a chain of 100 stores.

The establishment of the joint venture company is subject to the approval of the competition authorities. The handling of the matter is expected to be completed no later than the third quarter of 2017.

"In the joint venture, two strong and responsible Finnish operators combine their forces. Kesko has extensive experience in the grocery trade and a strong K consumer brand. Oriola-KD, for its part, is a highly valued distributor of health and wellbeing products and an expert in the pharmaceutical sector. Together with another Finnish, responsible company we will start building a leading health, beauty and wellbeing chain in which Finnish people trust. Our plan is, as legislation permits, to expand the business into selling pharmaceuticals, without compromising on pharmaceutical safety, but emphasizing service and expertise. The new store chain is estimated to create 1,000 new jobs across Finland," says Eero Hautaniemi, President and CEO of Oriola-KD.

A briefing in Finnish today at 13.00
Kesko and Oriola-KD will hold a briefing today, Monday, 13 March 2017 at 13.00 at the Hotel Haven, Unioninkatu 17, Helsinki.

Further information:

Eero Hautaniemi, President and CEO, tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola.com