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Finnish Kesko merges with Baltic online retail market group 1A

Kesko Senukai Digital, a company which belongs to the Finish Kesko concern group, closed the transaction in which it acquired 100 % of the shares of the online retail market group 1A and became one of the leading e-commerce platform operators in the Baltic countries.

The Kesko Senukai Group acquired the shares in 1A from the Latvian shareholders after the transaction had been approved by the competition authorities of all three Baltic States. The parties have not disclosed the value of this acquisition.

According to Mareks Zuika, CEO of the 1A Group, the unanimous development of the leading platforms operated by 1A and Kesko Senukai Digital will result in a qualitative and quantitative leap on the rapidly changing e-commerce market in the Baltic countries.

Currently, Kesko Senukai Digital is the leader in the Baltic “do-it-yourself” e-commerce sector, whereas the 1A Group is the leader in the online retail market in electronic and other non-food goods in Latvia, which carries out its business operations in Estonia and Lithuania as well.

The plans are that the income of the merged online e-commerce group will exceed EUR 80 mln this year.

The new group plans to offer the largest range of goods in the Baltics to its customers. There will be goods from around 250,000 names available on sale this year.

“Investments in the development of multi-channel trading are part of the strategic plan of the merged group. The growth of the e-commerce market in the Baltic countries significantly exceeds traditional retail trade. And we are ready to meet the constantly growing needs of customers to make purchases online in a convenient, safe and quick manner”, says Mareks Zuika.

According to the CEO of the 1A Group, the plans are to make investments in service quality improvement, modern e-platform technologies, mobile applications and other digital channel solutions.

It is claimed that Latvian consumers should be the ones who will benefit from the significantly improved post-merger opportunities to pick up their purchases in an even more convenient way and, where necessary, to return goods at the K Senukai retail chain stores.

Established in 2002, the 1A Group is one of the leaders in the sector of online trading in household, audio-video and other equipment in Latvia, Estonia and Lithuania, operating the trading platforms www.1a.lv, www.1a.ee and www.1a.lt in these countries. In 2017, the company’s income amounted to approx. EUR 41 mln in all the Baltic countries.

Kesko Senukai Digital is an e-commerce development company which operates the electronic stores of Kesko Senukai, the largest retail network of construction, repair and household goods in the Baltic States, in Latvia (www.ksenukai.lv), Lithuania (www.senukai.lt) and Estonia (www.k-rauta.ee). Last year, the company’s income amounted to EUR 19 mln.

The Finish concern Kesko owns 50% shares of Kesko Senukai Digital, and the remaining shares are held by Artūras Rakauskas, President of Kesko Senukai, Augustinas Rakauskas, the founder of the retail network, and the Žabolis ir Partneriai investment group.

The Kesko concern is one of the leaders of retail and wholesale trade in Europe, the turnover of which amounted to EUR 13 bln last year. The companies of the concern employ over 45,000 people.

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