Keskisen Kello Laatukoru
Keskisen Kello and Laatukoru combine online and store-based retail – Neuvoa advisor to the buyer
Neuvoa Advisors acted as financial advisor to Keskisen Kello Oy, part of the A-lehdet group, in the acquisition of Laatukoru Oy, a Finnish family-owned jewellery company. The transaction creates a multichannel watch and jewellery retailer that combines Finland’s largest online store in the category with an established store network in southern Finland.
Complementary sales channels
The strategic rationale of the transaction rests on the companies’ complementary strengths. Keskisen Kello is the leading online player in the industry, while Laatukoru’s strength lies in its network of 11 brick-and-mortar stores. The combination lays the foundation for a business in which the reach of e-commerce and the in-store customer experience reinforce each other.
“Laatukoru and Keskisen Kello complement each other superbly,” says Janne Sorakivi, CEO of Keskisen Kello. “Keskisen Kello has Finland’s largest online store for watches and jewellery, as well as a strong proprietary technology platform and the related expertise … Laatukoru, for its part, has three generations of customer service experience in 11 stores and a goldsmith workshop in Hyvinkää.”
Coverage across watches and jewellery
The same complementarity is reflected in the product range. Keskisen Kello’s focus is on watches, from traditional wristwatches to smartwatches and sports watches, whereas Laatukoru’s core expertise is jewellery. Laatukoru manufactures its own Silván collection in its goldsmith workshop in Hyvinkää, which is exceptional in Finnish jewellery retail. The combined company thus covers the key product categories of watch and jewellery retail.
“Laatukoru’s own Finnish jewellery design and high-quality manufacturing, together with the related specialist expertise, are particularly important to us. Thanks to this, we can offer our customers genuinely Finnish craftsmanship and individual finishing from within our own chain. In addition, we retail highly interesting and sought-after brands, so customers get a comprehensive selection in one place. Most important in this transaction, however, is that we are bringing together the people and valuable expertise of two companies – together, we are clearly more,” Sorakivi continues.
Part of the A-lehdet group’s growth strategy
The acquisition implements the A-lehdet group’s strategy of growing its core businesses both organically and through acquisitions. In the transaction, two Finnish family companies join forces, and ownership remains in Finland.
“The A-lehdet group develops its entrepreneur-led businesses with a long-term approach, and this acquisition is a significant strategic milestone. For Keskisen Kello and Laatukoru, the combination brings opportunities for growth and renewal. The company now has a strong foundation on which to build its next phase of growth,” says Heli Arantola, CEO of the A-lehdet group and Chair of the Board of Keskisen Kello.
Some of Laatukoru’s current owners will continue as entrepreneurs in the new Keskisen Kello, which supports the continuity of expertise and customer relationships.
“At Laatukoru, we have worked with great heart and pride for Finnish jewellery culture and for our customers, in their everyday lives and on their special occasions. When considering our company’s next step of growth, it was clear that we wanted a partner that shares the same values, appreciates Finnish workmanship and understands the significance of a family-business background. Keskisen Kello and the A-lehdet group were a natural choice for this. Laatukoru has highly skilled and committed staff, and it is wonderful to know that the journey now continues with the support of an even stronger organisation,” says Lauri Silván, representing Laatukoru’s owners.
Neuvoa’s role
Neuvoa Advisors acted as Keskisen Kello’s comprehensive financial advisor in the transaction, from the very first discussions all the way through to closing. The mandate continues Neuvoa’s long-standing cooperation with the A-lehdet group; we have previously advised the group on, among others, the acquisitions of Laine Publishing and Satokausi Media and the sale of Genero.