Finnish retail giant Stockmann has signed an agreement to sell the business operations of Hobby Hall to the Finnish SGN Group.
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The transaction will be completed on December 31, 2016, and the business will be transferred on January 1, 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.
Stockmann has also signed an agreement to transfer Hobby Hall’s logistics operations to Posti as of May 1, 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 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, Kessu, S.G. Nieminen, SGN Sportia, SGN Sportecom, SGN Tekniikka, SSF Spraying Systems Finland, Sumeko, Team Sportia AB and Truebell Finland.
Its net sales are approximately EUR 154 million and it has around 200 employees. The Group’s head office is in Vantaa. ■