Kesko's Onninen acquisition strengthens technical wholesale position
Kesko Oyj views the acquisition of Onninen, a technical wholesale company, as a success. The 2016 business deal has improved Kesko's market position in Northern Europe.
Helsinki – Kesko Oyj's 2016 acquisition of Onninen, a technical wholesale company, has significantly strengthened the company's position in the Northern European technical trade sector. Combined with other operations, the building and technical trade division's sales have grown to over €6.5 billion annually.
Kesko acquired Onninen, then a Finnish technical wholesale business, as part of a strategy to focus more on corporate clients and technical trade. Before the acquisition, only 40% of the building and technical trade division's sales came from business-to-business (B2B) customers. This figure now stands at over 80%, indicating the strategy's success.
Onninen currently operates approximately 130 Onninen Express stores and points of sale across seven countries, including Finland, Sweden, Norway, Poland, and the Baltic states. The company serves contractors, industry, and infrastructure builders, and does not engage in direct consumer sales.
The company's performance has been solid. In 2022, Onninen has increased its market share in all operating countries, with both net sales and operating profit growing in all countries during January-September 2022. Major trends such as energy efficiency improvements, green transition investments, and renovation needs are expected to support demand in technical wholesale going forward.
Kesko has announced plans to invest in Onninen's logistics by constructing a new logistics center valued at over €300 million, planned for completion between 2025 and 2030. This investment reflects confidence in Onninen's future prospects.