Kesko moves into Russia

Rautakesko, a subsidiary of the Finnish Kesko group, is acquiring a majority stake in the DIY retailer Stroymaster of St. Petersburg, Russia. The letter of intent sets a price of € 8.3 mio for the 55 per cent holding and an additional price to a maximum of € 5.1 mio that is tied to the results achieved from 2005 to 2009. Stroymaster operates four stores in St. Petersburg and a fifth is currently at the construction stage. What is more, there are further plans for larger outlets modelled on the K-rauta concept to be built in the city and perhaps in other parts of the country as well. Last year the chain recorded sales of € 38.6 mio, but in the first six months of the current year it has already reached € 26.9 mio, or 73 per cent more than the comparable period in 2003. The sales figure for the entire year is expected to be € 70 mio. Stroymaster is part of the Teks group, which is owned by Alexander Selenkin and Dmitry Skvortsov. The transaction should be finalised by 15 March 2005 at the latest.