The Finnish steel service company Feon has signed an agreement to acquire Kontino’s steel service business. When completed, the transaction will strengthen Feon’s position in a competitive market and will allow their steel e-commerce services to become available to a wider group of customers.
Feon Oy, subsidiary of the Finnish family-owned company Onvest Oy, is increasing its market share by acquiring the business of another Finnish steel service company, Oy Kontino Ab. The combined annual turnover of the new entity following the acquisition will total approximately EUR 150 million and will employ approximately 220 people.
Following the acquisition, Feon will be able to offer its existing and new customers an even wider range of products and services, as well as an efficient distribution network. At the same time, an increasing number of customers will have the opportunity to utilise Feon’s advanced online store when placing orders.
Petri Kalliokoski, CEO, Feon, has trust in the development and the expertise of the Finnish steel industry:
“By taking this significant growth step, we will be able to serve our customers even better with Finland’s most comprehensive stock selection and the fastest deliveries. We made significant investments in bringing e-commerce in to this very traditional industry, and already a third of all our sales comes through digital channels. During the coronavirus crisis, this has proved to be a particularly positive development. Through the acquisition, we will also be able to offer an even wider customer base with fast and easy-to-use digital purchasing channels.”
Acquisitions supporting growth strategy and a strong market position
In line with its growth strategy, Feon has strengthened its market position as a major domestic player in the industry through acquisitions. In the spring, the company acquired AluSteel Oy, based in Uusikaupunki, Finland, a company specialising in standard or cut-to-length sheets and pre-treatment services for plates. Feon and its subsidiary AluSteel together now represent the largest Finnish-owned steel service company.
Onvest has a positive view on Feon strengthening its position in the market:
“As advocates of active domestic ownership, we particularly welcome the fact that two Finnish steel service companies, serving their customers with expertise, are merging as an even stronger and more competitive entity,” states Kalle Kekkonen, CEO, Onvest.
Like Kontino, Feon is also a traditional family-owned business and the buyer candidate has been positively received by Aimo Kankare, CEO of Kontino:
“We are very pleased that the work we have done here at Kontino is appreciated, and with the support of a domestic owner Kontino will continue to develop. I believe that Feon and Kontino together will form an excellent customer-oriented entity.”
The acquisition is expected to be completed by the end of December 2020 or early 2021 and is not expected to have any impact on either Feon or Kontino with regards to the transferring of business’ personnel or services.
Petri Kalliokoski, CEO, Feon Oy
+358 40 135 4950
Feon Oy is the largest domestic steel service company in Finland. The company’s goal is to offer its customers a smooth and comprehensive delivery and service in steel products throughout the Finnish market. Feon’s customers are experts in machine and equipment manufacturing and steel construction. Feon helps develop Finnish industry by digitising services and operating methods. The Feon Group includes a subsidiary operating in Uusikaupunki, AluSteel Oy. Together, Feon and AluSteel have a turnover of approximately EUR 90 million and employ approximately 140 people in Finland. Feon is owned by Onvest Oy, a Finnish family-owned business.
Further information: www.feon.fi/en
Oy Kontino Ab is a Finnish steel wholesaler founded in 1928. The company supplies steel to the construction and engineering industries throughout Finland. Kontino selects the material directly from steel mills based on customers’ quality requirements, competitive pricing and efficient logistics. The company warehouses are located in Vantaa and Tampere, Finland, with good transport connections. Kontino’s customers are served by approximately 100 employees throughout the country.
Further information: www.kontino.fi