Stockmann has signed an agreement to sell the business operations of Hobby Hall to the Finnish SGN Group.
”We want to build a multichannel operation that will consolidate its
position in people’s daily lives and in Finnish homes,” says Sam Nieminen, CEO
of SGN Group.
The transaction will be completed on 31 December 2016, and the business will be transferred on 1 January 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.
“We are pleased to have found a strong, committed Finnish owner for Hobby Hall. SGN Group wants to develop Hobby Hall as a profitable, modern e-commerce operator. The divestment enables Stockmann to focus on its Stockmann and Lindex brands and real estate business in line with its strategy,” says Lauri Veijalainen, Stockmann’s interim CEO.
In December 2014, Stockmann announced it would focus on developing its Stockmann
and Lindex brands and its real estate business. The divestment of Hobby Hall
completes Stockmann’s strategic aim to withdraw from non-core business
“Hobby Hall is a well-known brand and has a wide customer base and popular online store. We believe that these qualities will benefit both parties when combined with SGN Group’s strong financial standing, long-term operational focus and expertise. To support our wholesale expertise and strong cooperation with retailers, we want to build a multichannel operation that will consolidate its position in people’s daily lives and in Finnish homes,” says Sam Nieminen, CEO of SGN Group.
Stockmann has also signed an agreement to transfer Hobby Hall’s logistics operations to Posti as of 1 May 2016. 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.
The SGN Group comprises Agritek Oy, Kessu Oy, S.G. Nieminen Oy, SGN Sportia Oy, SGN Sportecom Oy, SGN Tekniikka Oy, SSF Spraying Systems Finland Oy, Sumeko Oy, Team Sportia
AB and Truebell Finland Oy.