Steel service company Feon acquires Kontino – the acquisition strengthens Feon’s market position as the largest domestic player in the industry

PRESS RELEASE Helsinki 14.12.2020 10:00

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.

Feon’s owner, family-owned 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.

Additional information:

Petri Kalliokoski, CEO, Feon Oy
petri.kalliokoski@feon.fi
+358 40 135 4950

Feon Oy

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

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

Steel service company Feon acquires AluSteel – “The acquisition brightens up the Finnish steel business”

PRESS RELEASE 4.5.2020 EET 10:15 Helsinki

Finnish steel service company Feon has acquired AluSteel, a company based in Uusikaupunki, Finland. Feon aims to position itself as one of the biggest steel service companies in Finland. CEO Petri Kalliokoski states that the acquisition brightens up the Finnish steel product wholesale business that has struggled with oversupply and a gloomy economic outlook during the coronavirus crisis.

Feon Ltd, a subsidiary of Onvest Ltd, has acquired Uusikaupunki-based AluSteel Ltd. The deal was closed on April 30th. The combined revenue of both companies is estimated to reach over 100 million euros.

AluSteel specializes in the business of custom cut metals. Feon is the leading producer of structural steel in Finland. Petri Kalliokoski, the CEO of Feon, states that the goal of the transaction is to position Feon as one of the leading steel service companies in Finland. According to Kalliokoski, the products and services of AluSteel compliment Feon´s current strengths and expertise.

“We make a perfect, complimentary match. By combining our strengths we are able to provide a broad range of products and services to our current customers in machine and equipment manufacturing – as well as in all phases of metal and steel construction. It is our ambition to ensure that our customers can acquire all the steel products they need without compromising convenience or reliability”, Kalliokoski claims.

Steel wholesale business goes digital

According to Kalliokoski, the digital revolution has begun to transform the steel industry at a growing speed since last year. E-commerce hasn’t been as commonly utilized in the steel industry as in many others. The coronavirus crisis is changing the ways in which business is conducted.

“The industry has been quite stable during recent years but suddenly all of our sales operations have gone remote. It’s vital that our customers can purchase the steel products needed in a digital, efficient and a convenient way. Feon has been the forerunner of e-commerce in the Finnish steel business. Now we can see the work we have done the past few years truly is paying off”, Kalliokoski says.

The Finnish steel industry has recently struggled with global competition and oversupply.

“The Finnish steel industry needs a structural transformation. This acquisition brightens up the entire industry as we improve the competitiveness of domestic customers by offering our products in a reliable and efficient manner. We will be able to bring also new alternatives to the market.”

Growth strategy to continue

For AluSteel the acquisition secures long-term opportunities.

“We are delighted by the steady ownership that Feon and its Finnish owner, the family company Onvest, can offer us. We have been given a significant opportunity to develop our business and a chance to enable a broader sales network”, claims CEO of AluSteel, Pekka Putro.

Petri Kalliokoski, the CEO of Feon, says that new acquisitions will be possible in the future.

“The acquisition of AluSteel is the first step in our strategic journey”, Kalliokoski states.

The deal was closed on April 30th and the transaction has been effective as of May 1st 2020.

AluSteel and its staff continue to work as a subsidiary to Feon.

For more information:
Petri Kalliokoski, CEO
petri.kalliokoski@feon.fi
+358401354950

OpusCapita’s e-invoice operator ID will change in Finland

Please note that the e-invoice operator ID for Feon Oy has changed.

Please update valid e-invoicing information accordingly:

VAT: FI27330384

E-invoice address: 003727330384

Operator ID: E204503

Operator: OpusCapita Solutions Oy

Due to the reorganization, OpusCapita’s B2B e-invoice operator ID will change in Finland. As of June 1, 2018, OpusCapita Solutions Oy will have a new e-invoice operator ID E204503. Old operator ID is valid until 31.12.2018.

Old operator ID: 003710948874

Old operator name: OpusCapita Group Oy

This does not affect other billing information.

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