Aspo's Kaukomarkkinat divests frequency converter business in Poland

ASPO Plc / KAUKOMARKKINAT Ltd     PRESS RELEASE  July 16, 2014 at 8:45

Kaukomarkkinat, an Aspo subsidiary, has sold its frequency converter business to Vacon Plc. The business includes the import, export and maintenance operations of frequency converters and related equipment in Poland. Kaukomarkkinat and its affiliates have been partners and retailers of Vacon in Poland since 1994.

With this acquisition, Vacon seeks to strengthen its presence in Poland and to provide increasingly diverse services to both local and global machine and equipment manufacturers, as well as to brand label customers. In the transaction, Vacon will receive all of the business and its Poland-based staff.

"Kaukomarkkinat updated its strategy in 2013. Kaukomarkkinat is divesting its frequency converter business in Poland as part of the evaluation of its existing foreign operations and their suitability to our overall strategy," says Jukka Nieminen, Managing Director of Kaukomarkkinat.

Nieminen says that Kaukomarkkinat will focus on stabilizing its business and improving its profitability during 2014. The company will then seek to engender growth in Finland as a provider of local energy solutions for the building sector, and electronic systems for various professional applications. Through business development, it is estimated that new growth preconditions will also exist outside of Finland, especially in the Baltic countries and Russia.

The parties have agreed to not disclose the transaction price. The sales profit from the deal will not make a significant impact on the results of Kaukomarkkinat or Aspo. The goal is to complete the deal by September 1, 2014.

For further information, please contact:
Jukka Nieminen, Managing Director, Kaukomarkkinat Ltd, tel. +358 9 521 5100, +358 40 5574547, email: jukka.nieminen (a) kaukomarkkinat.com.

Kaukomarkkinat supplies products and systems that improve efficiency for the real estate and industrial sectors, as well as tools for professionals. The goal is to increase the energy efficiency, process efficiency and safety of our customers, as well as the profitability of their operations. The business is based on an in-depth understanding of customer needs, an extensive network of principals, and the ability to combine products and systems into functional entities. Kaukomarkkinat operates in Finland, Poland, Latvia, Russia, China, and Vietnam. Established in 1947, Kaukomarkkinat is part of the Finnish Aspo Group. www.kaukomarkkinat.com

Aspo is a conglomerate that owns and develops business operations in northern Europe and growth markets, focusing on demanding B-to-B customers. Our strong company brands - ESL Shipping, Leipurin, Telko and Kaukomarkkinat - aim to be the market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these. Together they generate Aspo's goodwill. Aspo's Group structure and business operations are continually developed without any predefined schedules. www.aspo.com

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