Aspo Oyj: Aspo's subsidiary Leipurin acquires Kobia AB and strengthens its position in the Western market in accordance with Aspo's strategy

Aspo Plc
Inside information
May 30, 2022 at 17:35 p.m.

Aspo's subsidiary Leipurin acquires Kobia AB and strengthens its position in the Western market in accordance with Aspo's strategy

Aspo's subsidiary Leipurin has agreed to purchase the entire share capital of the Swedish bakery industry distributor Kobia Ab from the Swedish Abdon Group. The acquisition will expand Leipurin's geographical presence in the Northern European market. In 2021, Kobia's net sales amounted to approximately EUR 50 million and its operating profit margin was approximately 3%. The transaction also includes the properties owned by Kobia, and the acquisition will not generate significant goodwill. The acquisition price is not disclosed.

Through the acquisition, Leipurin further strengthens its position as a leading player in the Baltic Sea region, with increased size and profitability. The new entity provides suppliers with a compelling gateway to the region's market. Customers in the bakery and food industry will benefit from a strong partner in the global raw material market.

For Aspo, the transaction is in line with its revised strategy as a market consolidating acquisition in Western Europe. The acquisition provides significant value creation opportunities over time through development of commercial operations, supply chain and procurement. Integration and value creation of Kobia will be incorporated to Leipurin's ongoing profit improvement program to develop a shared management system.

"The companies have similar roots and an equally long history - both companies are founded by bakeries. I am convinced of the professionalism of Kobia's personnel and look forward to the cooperation and strategic development of the new unit together with Kobia," says Heli Arantola, Managing Director of Leipurin.

"This project is an excellent fit to Aspo's acquisition-driven growth strategy and will significantly increase Aspo Group's net sales in the Western market," says Rolf Jansson, CEO of Aspo Group.

The bakery markets and consumer product categories in Finland and Sweden are similar. The companies have complementary customer segment and category expertise, which offers opportunities for cross-selling and business development throughout the Baltic Sea region.

The acquisition will create Leipurin's Nordics region, which includes Finland and Sweden. The other main market area is the Baltics, which includes Ukraine. In 2021, the geographical distribution of Leipurin's net sales was as follows: Finland approximately EUR 43 million, the Baltics approximately EUR 31 million and Russia, other CIS countries and Ukraine approximately EUR 35 million. Leipurin has previously announced its withdrawal from Russia, Belarus and Kazakhstan. Leipurin currently has 240 employees and Kobia approximately 90.

The acquisition is subject to approval from the Swedish competition authority. The transaction is expected to close by the end of August.


Aspo Plc

Rolf Jansson
CEO

Further information, please contact:
Rolf Jansson, CEO, Aspo Plc, [phone], [e-mail]

DISTRIBUTION:
Nasdaq Helsinki
Key media
www.aspo.com

Aspo creates value by owning and developing business operations sustainably and in the long term. Our companies aim to be market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these aiming to be forerunners in sustainability. Aspo supports its businesses profitability and growth with the right capabilities. Aspo Group has businesses in 18 different countries, and it employs a total of approximately 930 professionals.

Leipurin operates as part of the food chain, acquiring raw materials in global markets and from domestic companies and supplying them through its effective logistics chain according to customer needs. Leipurin operates in eight countries that have been grouped into three regional organizations, each being responsible for their financial performance: Finland, East, and the Baltic region. Leipurin serves bakery, food industry and foodservice customers by providing raw materials and by supporting research and development and recipes for new products. Leipurin's other product categories include various supplies and machines for the same customer segments. Leipurin uses leading international manufacturers as its raw material and machinery supply partners.