Note 3. Business acquisitions and assets disposed of
In 2015 and 2014, Kesko Group did not have acquisitions to be accounted for as business combinations.
On 18 November 2015, Kesko Corporation's subsidiary Kesko Food Ltd made an agreement to acquire the whole share capital of Suomen Lähikauppa Oy from the private equity investment firm Triton. The net sales of Suomen Lähikauppa in 2014 were €999.2 million, it has 643 Siwa and Valintatalo stores and 4,100 employees. The transaction price of the debt-free acquisition, structured as a share purchase, is approximately €60 million.
The completion of the acquisition is subject to the approval of the Finnish Competition and Consumer Authority and the fulfilment of the other terms and conditions of the transaction. The handling of the matter and the acquisition are expected to be completed in the first half of 2016.
Disposal of assets
In March 2015, Kesko sold the department store chain Anttila Oy to the German investment fund 4K INVEST at a price of €1 million. The transaction included all assets and liabilities in Anttila Oy. Anttila Oy's approximately 1,500 employees continue in the employment of the company. The date of the transaction was 16 March 2015. A €-130 million non-recurring loss was recorded on the transaction relating to the financing, working capital and fixed assets of Anttila.
In June, Kesko, AMF Pensionsförsäkring and Ilmarinen established a joint real estate investment company. The joint venture owns, manages and develops store sites primarily used by Kesko Group. Kesko sold some of its store sites in both Finland and Sweden to the established joint venture. The fair value of the store sites sold totalled €485 million and a €75.6 million non-recurring gain on the sale was recorded. The cash inflow generated by the arrangement was €403 million.
In addition, Kesko sold four properties to Kesko Pension Fund. A €22.9 million non-recurring gain on the sale was recorded.
In 2014, Kesko Group did not make any significant disposals of assets.