TRONDHEIM - Yesterday Reitan Servicehandel (RSH) acquired more than 1.000 kiosks from the Finnish media company Sanoma OY in Finland, Estonia and Lithuania. The purchase price is approx. 130 million Euros. As a result of the latest acquisition, Magnus Reitan will manage more than 2.500 stores with close to NOK 14 billion in revenue and 18.000 employees in seven countries.
This acquisition makes us Europe's second largest convenience store operator, an achievement of which we are very proud. All of the chains have a leading position in their respective markets, and it is with great humility we are going to further develop these brands in Finland, Estonia and Lithuania, Reitan Servicehandel CEO Magnus Reitan says.
New product categories
The revenue in Finland, Estonia and Lithuania is to a great extent based on traditional newsstand products such as tobacco, magazines and lottery, while Narvesen and Pressbyran to a larger degree have developed new and profitable product groups such as meals to go, drinks and electronic services.
Our competence will contribute to accelerate the development of more profitable products. However, there is no guarantee that the demand in Finland, Estonia and Lithuania will be the same as in Scandinavia and Latvia. We will therefore rely on the competence and the local know-how that exists in today's organization, Magnus Reitan says.
Close to 14 billion
In 2011, Reitan Servicehandel produced revenues of approximately NOK 11 billion from its activity in Norway, Sweden, Denmark and Latvia. The revenue is now increasing by close to 30 percent and the company will have total revenues of almost NOK 14 billion, making the company Europe's second largest convenience store operator, after French owned Lagardere.
The Reitan Group is a family owned company with a long-term perspective for all our work. Although the convenience store sector has had a challenging few years in parts of Scandinavia, we strongly believe there is a lot of potential on a long-term scale. Demographic indicators such as population growth within the cities, increase in public transport density, as well as a greater number of single households, all contribute to strengthen the prediction of convenience stores becoming a megatrend, Magnus Reitan optimistically concludes.
The transaction is subject to EU merger control filing and the approval is expected to be received within two months from the filing.
About Reitan Servicehandel
Reitan Servicehandel (RSH) comprises Narvesen in Norway and Latvia, Pressbyran in Sweden, and 7-Eleven in Norway, Sweden and Denmark. RSH holds a leading position in all four countries. As of 31 December 2011 the number of shops was 1.489, and RSH had revenues of NOK 11.4 billion in 2011.
Reitan Servicehandel is a part of the Reitan Group (Reitangruppen). The Reitan Group consists of four areas of operation: REMA 1000, Reitan Servicehandel, Reitan Real Estate (Reitan Eiendom) and the Uno-X Group. In addition, Reitan Group owns the subsidiary Spaceworld and holds a share of 15,62 percent in Axfood. Reitan Group's vision is to become known as Scandinavia's most value driven company. In 2011, Reitan Group had revenue of NOK 63 billion (including franchise turnover) and employed 27.500 people in Scandinavia and Latvia, making it one of Norway's ten largest companies.
R-kioski comprises R-kioski in Finland, R-kiosk in Estonia and Lithuania and Lietuvos Spauda in Lithuania. R-kioski holds a leading position in all three countries. As of 31 December 2011 the number of shops was 1.480, and R-kioski had revenues of approximately NOK 3 billion in 2011.
SOURCE: Reitan Servicehandel
Copyright Business Wire 2012