Feon, a subsidiary of the Finnish family-owned company Onvest, is increasing its market share by acquiring the business of another Finnish steel service company, Kontino. Following the acquisition, the new entity will have a combined turnover of 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.
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.
Kontino 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 and Kontino’s customers are served by approximately 100 employees throughout the country.
Petri Kalliokoski, CEO of Feon, said: “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”.
Kalle Kekkonen, Managing Director of Onvest, said: “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”.
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 digitalising services and operating methods. The Feon Group includes a subsidiary operating in Uusikaupunki, AluSteel Oy.
Onvest Oy is a Finnish financially solid family company whose goal is to create stable return with controlled risk. Onvest’s business currently consists of three areas: steel service operations, industrial holdings, and real estate business.