Svedbergs in Dalstorp signs agreement with Rautakesko Oy, one of Europe’s biggest DIY chains.Feb 07, 2012 14:28 GMT
The new partnership deal covers the Swedish, Finnish and Norwegian markets, where Rautakesko, owned by the Kesko Group, runs the K-Rauta, Rautia and Byggmakker DIY chains. Rautakesko has 21 K-Rauta outlets in Sweden, 41 K-Rauta and 106 Rautia outlets in Finland, and 112 Byggmakker outlets in Norway. In addition Rautakesko also has a presence in Russia, Belarus and the Baltic countries.
“We are very pleased with this agreement, which will enable us to develop and extend our business in Sweden and Finland, as well as giving us a significantly stronger foothold in the Norwegian market, since we will now be able to accelerate expansion in Norway through the Byggmakker chain of DIY stores,” says Anders Tofte, CEO of Svedbergs.
“Rautakesko was looking for a partner at the upper end of the bathroom furnishing sector in order to build Nordic sales in this product sector in the long term. We realised there were considerable mutual synergies, so we are glad to be able to offer Rautakesko our product range and knowhow. We expect to see strong growth together in the Nordic market,” adds Anders Tofte.
“We were looking for a reliable partner with the aim of establishing a long-term partnership and mutual commitment. Svedbergs is a well-managed company with a good reputation, and through our previous dealings we were convinced that Svedbergs has an active and effective organisation as well as a high-quality range of products. Our initial goal is to double our volumes in the short term,” says Harri Fagerlund, Director of Interior Decoration and Home Furnishing at Rautakesko.