Kesko has agreed to acquire foodservice wholesaler Heinon Tukku Oy to expand its offerings in the growing foodservice market in Finland.

Information on the Target

Kesko has entered into an agreement to acquire Heinon Tukku Oy, a prominent foodservice wholesaler, from Tukkuheino Oy, a family-owned company, and several private individuals. This acquisition aligns with Kesko's strategic plan to enhance its operations and expand its product offerings within the increasingly competitive foodservice market. The completion of this transaction is contingent upon receiving approval from the Finnish Competition and Consumer Authority as well as fulfilling other necessary conditions, with an expected finalization date in 2019.

Heinon Tukku Oy is one of the leading operators in the foodservice sector in the greater Helsinki area, employing approximately 450 individuals. In the financial year of 2018, Heinon Tukku and its affiliate, Kalavapriikki Oy—which specializes in fish processing—reported a combined net revenue of €264 million, with a comparable pro forma operating profit of €10 million, factoring in the impact of acquired assets. Along with Heinon Tukku, Kesko will also take ownership of Kalavapriikki Oy and various delivery properties and cash & carry outlets located in Espoo, Helsinki, Kuopio, and Vantaa.

Industry Overview in the Target’s Specific Country

The Finnish foodservice industry has shown remarkable resilience and growth potential due to increasing consumer demand for diverse food offerings and the rising popularity of dining out. With an expanding population and changing consumer preferences, establ