On 25 April 2018, Rusta AB (“Rusta”) entered into an agreement to acquire 100 percent of the share capital of Hong Kong Group Oy (“Hong Kong”, the “Company”) from its current private owners.
Hong Kong is a leading Finnish discount retailer with 25 stores across the country and c. 500 employees. The Company has strong positions in Finland in the categories Home & Living, Gardening, Tools & DIY, Outdoor & Fishing, and Convenience via a mix of private label through own import and known brands such as Bosch, Rexona, and L’Oréal to name a few. Since January 2017, the Company has undergone a restructuring proceeding which was approved by the Finnish courts on 28 March 2018. During the restructuring process, the Company has undergone a structural cost reduction programme and a reorganisation. Hong Kong generates annual revenues of c. EUR 100m.
The transaction is in line with Rusta’s strategy to roll out its discount retail product offering into markets with attractive fundamentals and will provide Rusta with a swift entry into the Finnish discount retail market.
Terms of the transaction were not disclosed.
Carnegie acted as financial advisor to Rusta.