Stockmann to sell Hobby Hall business to Finnish SGN Group
STOCKMANN plc, Company Announcement 28.4.2016 at 7:59 EET
In December 2014, Stockmann announced it would focus on developing its Stockmann and Lindex brands and its real estate business. The divestment of Hobby Hall completes Stockmann’s strategic aim to withdraw from non-core business operations.
Stockmann has signed an agreement to sell the business operations of Hobby Hall to the Finnish SGN Group. The transaction will be completed on 31 December 2016, and the business will be transferred on 1 January 2017. The transaction price is not expected to have a significant effect on Stockmann’s result. The transaction includes Hobby Hall’s assets and liabilities and all of its business operations, excluding logistics, as of the date of transfer. When the transaction takes place, Hobby Hall’s sales and support personnel in all locations will be transferred to SGN as existing employees.
“We are pleased to have found a strong, committed Finnish owner for Hobby Hall. SGN Group wants to develop Hobby Hall as a profitable, modern e-commerce operator. The divestment enables Stockmann to focus on its Stockmann and Lindex brands and real estate business in line with its strategy,” says Lauri Veijalainen, Stockmann’s interim CEO.
“Hobby Hall is a well-known brand and has a wide customer base and popular online store. We believe that these qualities will benefit both parties when combined with SGN Group’s strong financial standing, long-term operational focus and expertise. To support our wholesale expertise and strong cooperation with retailers, we want to build a multichannel operation that will consolidate its position in people’s daily lives and in Finnish homes,” says Sam Nieminen, CEO of SGN Group.
Stockmann has also signed an agreement to transfer Hobby Hall’s logistics operations to Posti as of 1 May 2016. The agreement covers warehousing services for Hobby Hall’s products, logistics services for its online store, including deliveries and the product returns centre, and the transport of products to the Hobby Hall store in Tammisto, Vantaa. All of Hobby Hall’s warehouse personnel will transfer to Posti as existing employees.
Hobby Hall’s 2015 revenue was EUR 86 million and its operating result EUR -5.7 million. At the end of the year, Hobby Hall had about 340 employees, of whom around 130 worked in warehouse operations. Stockmann will continue to report Hobby Hall’s result in the Stockmann Retail segment in 2016. Hobby Hall’s assets will be reported as assets available for sale on the balance sheet.
Established in 1933, SGN Group is a strong, continuously developing Finnish family business in the commerce sector. Its areas of business include sports, recreational and household goods, agriculture, environmental management and industrial equipment, and snowmaking and snow-management equipment. The Group also has significant business operations in Russia and Sweden. The SGN Group comprises Agritek Oy, Kessu Oy, S.G. Nieminen Oy, SGN Sportia Oy, SGN Sportecom Oy, SGN Tekniikka Oy, SSF Spraying Systems Finland Oy, Sumeko Oy, Team Sportia AB and Truebell Finland Oy. Its net sales are approximately EUR 154 million and it has around 200 employees. The Group’s head office is in Vantaa. http://www.sgn.fi/
For further information, please contact: Lauri Veijalainen, interim CEO, Stockmann, tel. +358 9 121 5062 Nora Malin, Communications Director, Stockmann, tel. +358 9 121 3558 Sam Nieminen, CEO, SGN Group, tel. +358 40 552 7040 Helena Peltola, Communications Manager, SGN Group, tel. +358 50 561 5895