It’s been a while since the news of the Dahl acquisition, but today @Arttu_Heikura and I put together a more comprehensive look at the biggest deal in the company’s history and its performance at the start of the year. Ironically, we also discussed the possibility of a breakup of Kesko, even though we just heard about this massive deal; however, the synergies between the grocery trade (PT-kauppa), car trade (Autokauppa), and building and technical trade (RT-kauppa) are so negligible that the idea of them eventually being split into separate companies is not entirely far-fetched.
We’ll keep an eye on how this develops, but the primary focus is, of course, on integrating the acquired businesses and increasing their profitability.
Topics:
00:00 Intro
00:32 Dahl is a leading player in its field
01:32 A dream deal for Kesko
03:20 The price tag for the Dahl acquisition is not on the cheap side
05:10 Challenging market has weighed on Dahl’s sales
06:57 Varied profitability in Dahl’s market areas
08:40 Kesko becomes a Nordic trade giant in the building and technical trade (RT-kauppa)
10:41 Financing of the Dahl acquisition
12:29 Could Kesko be broken up into smaller entities?
17:14 A strong start to the year for Kesko
19:05 Stock still offers an attractive return expectation