Press Release 25/08/2011 13:00
The Sanoma Trade division of the Sanoma Group will sell its bookstore operations in Finland to Otava Ltd. The transaction includes all shares of Suomalainen Kirjakauppa Oy, six properties used by Suomalainen Kirjakauppa and Rautakirja's and Suomalainen Kirjakauppa's shares of Kirjavälitys Oy, a company specialising in logistic services. The deal is subject to the approval of the Finnish competition authorities. The closing of the transaction is expected during September. Sanoma Trade's Estonian bookstore operations are not included in the transaction.
The enterprise value of the transaction is EUR 27.5 million. In 2010, net sales of the Finnish bookstores were EUR 109 million and operating profit EUR 2 million. Bookstore operations currently comprise 59 Suomalainen Kirjakauppa outlets, two Yliopistokirjakauppa bookstores, three Reader's paperback bookshops, the Lukiolaisten Kirjakauppa webstore and the online webstore Suomalainen.com. These operations employ some 480 people (FTEs).
"This transaction is in line with Sanoma's strategy to focus its operations and to concentrate on consumer media and learning solutions," says Harri-Pekka Kaukonen, President and CEO of Sanoma.
Earlier in the spring, Sanoma divested its movie operations as well as kiosk and press distribution operations in Russia and Romania. In August, Sanoma announced that it is looking into the possibility of divesting also other assets in the Trade division.
If the divestment of bookstore operations materialises, it is estimated to have an effect on the outlook of the Sanoma Trade division. Sanoma Trade's net sales are expected to decrease significantly and operating profit excluding non-recurring items to decrease clearly in 2011. Previously, net sales were estimated to decrease and operating profit excluding non-recurring items to be at the previous year's level. This transaction does not have an effect on the outlook of the Sanoma Group.
Chief Financial Officer
Additional information: Sanoma's Investor Relations, Kare Laukkanen tel. +358 105 19 5064 and Anna Tuominen tel. +358 105 19 5066 or firstname.lastname@example.org
Sanoma inspires, informs and connects. As a diversified media group, we bring information, experiences, education and entertainment to millions of people every day. We make sure that quality content and interesting products and services are easily available and meet the demands of our readers, viewers and listeners. We offer a challenging and interesting working environment for nearly 20,000 people in over 20 countries throughout Europe. In 2010, the Group's net sales totalled EUR 2.8 billion.