Etelä-Saimaan Sanomalehti Oy, part of SanomaWSOY Group's Sanoma Lehtimedia, has divested the business operations of Etelä-Karjalan Jakelu Oy to Finland Post. The deal will be effective as of 1 September 2005. Etelä-Karjalan Jakelu is in charge of delivery of the Lappeenranta-based daily Etelä-Saimaa and other morning papers in the Southern Karelia region. The deal will not affect the schedules of post deliveries.
The purpose of Sanoma Lehtimedia is to ensure continuing quality delivery of morning papers, which is a major factor in competition among the Finnish press. Selling of delivery operations to the leading company in the field in Finland will improve the possibilities to develop delivery quality and efficiency in the Southern Karelia region. Sanoma Lehtimedia will continue to co-operate closely with Finland Post in matters concerning early delivery of newspapers in the Lappeenranta region.
- We consider that the development of delivery in the Lappeenranta region is best when in the ownership of Finland Post. The deal will create a new basis for the development of delivery operations. The purpose is to secure cost-efficient delivery operations keeping the price of the paper at a competitive level, says Antti Mäkelä, President of Sanoma Lehtimedia.
- Some years ago, Sanoma outsourced Leijonajakelu to Finland Post. Selling of Etelä-Karjalan Jakelu is a logical step to continue on the same path with favourable experiences. We will focus on Sanoma's core business, making of newspapers, says Mikael Pentikäinen, President of Sanoma Corporation.
The deal is in line with SanomaWSOY's strategy to focus on its core business and divest non-core businesses.
The employees of Etelä-Karjalan Jakelu will continue at Finland Post and their employment benefits earned so far will remain unchanged.
Etelä-Karjalan Jakelu's net sales amounted to EUR 3.2 million in 2004. It employs 120 persons delivering papers.
Sanoma Lehtimedia comprises the dailies Etelä-Saimaa, Kouvolan Sanomat and Kymen Sanomat, the free sheets Lappeenrantalainen and Kaupunkilehti Seiska, as well as the local papers Uutisvuoksi (in Imatra), Anjalankosken Sanomat, Pitäjänuutiset (in Mäntyharju), Kaakonkulma (in Virolahti), Joutseno, and Luumäen lehti.
Sanoma Lehtimedia is part of the Sanoma division of the SanomaWSOY Group.
Additional information:
Antti Mäkelä, President, Sanoma Lehtimedia, tel. +358 5 2100 2001 or +358 50 516 7896
Mikael Pentikäinen, President, Sanoma Corporation, tel. +358 9 122 2000
Ismo Heikkonen, Director, Finland Post Corporation, tel. + 358 2045 14402 or +358 40576 9413
Finland Post
As the leading company providing messaging and logistics services in Finland and in selected markets in Northern Europe, Finland Post has organised its businesses into the following three business groups: Messaging, Logistics and Information Logistics, the latter operating under the name of Itella. With a staff of more than 23,000 and a net turnover of EUR 1,235 million in 2004, Finland Post Group delivers around 11 million items on a daily basis.
SANOMAWSOY CORPORATION
Matti Salmi
Senior Vice President
Finance and Administration
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Helsinki Stock Exchange
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