MEKO (previously Mekonomen Group) has entered into an agreement to acquire Koivunen, the leading provider of automotive spare parts and related services in Finland and Estonia, with operations also in Latvia and Lithuania. The enterprise value is EUR 122 million (SEK 1,280 million) on a cash and debt free basis. Thus, MEKO is expanding its current Finnish operations and establishing itself in the Baltics. Through the expansion, MEKO will have a presence around the Baltic Sea and strengthen its position as Northern Europe’s leading player in the automotive aftermarket.

Koivunen had net sales of approximately SEK 1,740 million and an EBIT of approximately SEK 98 million during the financial year 2021. Approximately 70% of net sales in 2021 were generated in Finland and 30% in Estonia, Latvia and Lithuania. Koivunen owns a large part of the properties it operates in Finland, Estonia and Latvia. As a result, the properties constitute a valuable asset to the company and also a material part of the transaction value. MEKO plans to evaluate the long-term ownership strategy for the properties. The acquisition is expected to generate annual synergies of SEK 40 million due to complementary geographical presence as well as overlaps in supply chain, purchasing and other operational areas, with full effect expected during 2024.

Through the acquisition, MEKO establishes itself as the leading player in Finland, where the company currently has a relatively small operation, and in Estonia, where it currently has no presence. The acquisition also expands MEKO’s operations to Latvia and Lithuania. Koivunen’s distribution channels include affiliated and independent workshops and resellers, industry customers and exports. Going forward, Koivunen will operate within the framework of the existing corporate structure and multi-brand strategy as a standalone business area within MEKO across its geographies, including MEKO’s current operation in Finland.