As a result of the acquisitions, Tokmanni will have more than 100 stores in different parts of Finland and some 2,000 employees. The operations of the acquired businesses will continue unchanged after the deals. Kyösti Kakkonen will continue as the Managing Director of Tokmanni Oy. Seppo Saastamoinen, formerly a partner of Tarjousmaxi and Säästötalo Robinhood, will be Assistant Managing Director and a partner of the company.
Funds managed by CapMan made an initial investment in Tokmanni in October 2004, when the discount store operations of Tokmanni and Vapaa Valinta were merged. Tokmanni’s business has developed according to plans since the investment.
”The acquisition agreements that have now been signed will extend Tokmanni’s discount store chain over almost the whole of Finland. In accordance with Tokmanni’s strategy, the acquisitions are a continuation of the Milleri and Säästökuoppa acquisitions made earlier this year as well as the merger of Tokmanni and Vapaa Valinta that was closed one year ago,” says Jukka Järvelä, Chairman of Tokmanni Oy and Partner of CapMan.
”We expect that Finland’s discount store markets will continue to grow strongly. Our objective is to actively participate in the industry’s development and consolidation also in the future, as well as to integrate Tokmanni‘s corporate culture and logistics among others,” says Jan Mattlin, Vice Chairman of Tokmanni Oy and Investment Manager at CapMan.
”In recent years Tokmanni, Tarjoustalo, Maxi-Makasiini and Säästötalo Robinhood have been the most successful chains in the discount store industry, and the new entity will have a solid position in Finnish markets,” states Kyösti Kakkonen, Managing Director of Tokmanni. “The larger company size brings competitive advantages through efficient chain management and cost-effectiveness among others. Our aim is to provide customers with an even more comprehensive product range at a competitive price.”
”The merger enables development of the business through economies of scale and the establishment of new stores. During the next three years it is highly likely that we will need to recruit more staff. Personally, I feel that I have a lot to give to the new business entity,” says Seppo Saastamoinen, the new Assistant Managing Director of Tokmanni.
”Tarjousmaxi is an excellent fit with Tokmanni and Robinhood. The chains have the same values, their retail distribution networks do not overlap one another and the new entity will be able to reply to ever-increasing competition even better than before. It brings me great satisfaction to see Tarjousmaxi come to a good home after years of work and development, and I wish the new entity much success and good fortune,” says Kari Hautanen, Councillor of Commerce, Managing Director of Tarjousmaxi Oy to date, on behalf of the sellers of Tarjousmaxi. Arja Hautanen, Commercial Manager and partner to date, also extends her best wishes to the new business entity.
”After eighteen years it is a pleasure to hand over the most well-known discount store chain in South-eastern Finland for further growth. I would like to extend my warmest thanks to the staff of Robinhood for our years together and I wish the new company every success. From now on, I will focus on my family and on free time activities,” says Jukka Saastamoinen, a partner of the company selling the Robinhood business.
The acquisitions require the approval of the Finnish Competition Authority and it is expected that the transactions will be closed in January 2006. Following the acquisitions, CapMan funds will hold an approx. 51% stake in Tokmanni Oy, Kyösti and Kari Kakkonen will hold approx. 24%, Seppo Saastamoinen will hold approx. 24% and the other management will hold 1%.
Press conference
A press conference on the acquisitions will be held for the media today, Monday 19 December 2005, at 11.00 a.m. in CapMan’s premises at the address Korkeavuorenkatu 32, Helsinki. Mr Jan Mattlin, Vice Chairman of Tokmanni Oy and Investment Manager at CapMan, Mr Kyösti Kakkonen, Managing Director of Tokmanni Oy, Mr Seppo Saastamoinen, the new Assistant Managing Director of Tokmanni Oy and Mr Sixten Hjort, Finance Director of Tokmanni Oy will be present at the event. Presentation material from the press conference will be available at the same time on CapMan’s Internet pages at www.capman.com.
For further information, please contact:
Jan Mattlin, Investment Manager, CapMan Buyout, tel. +358 40 508 6406
Kyösti Kakkonen, Managing Director, Tokmanni Oy, tel. +358 50 65 222
Seppo Saastamoinen, new Assistant Managing Director, Tokmanni Oy, tel. +358 400 890 481
Other contact information:
Kari Hautanen, Managing Director, Tarjousmaxi Oy, tel. +358 400 482 049
Jukka Saastamoinen, Managing Director, Jukka Saastamoinen Oy, tel. +358 400 250 349
Sixten Hjort, Finance Director, Tokmanni Oy, tel. +358 40 703 4502