Based on the letter of intent announced in November 2011, Tikkurila has concluded the divestment of its three sales subsidiaries in Hungary, Czech Republic and Slovakia. The companies were transferred to Dejmark Group, a company established by Tikkurila's local management, on February 29, 2012. Moreover, Tikkurila has also agreed on selling all the shares in its Romanian subsidiary to the same buyer. Dejmark Group continues the retail of Tikkurila's products in all of the four countries.
The combined revenue of the four divested subsidiaries was approximately EUR 12.8 million in 2011, and the number of employees at the end of December 2011 totaled 65.
The aggregate cash consideration for the sold shares is EUR 0.6 million. Furthermore, an interest-bearing five-year vendor loan arrangement totaling EUR 3.7 million has been agreed upon. As a consequence of the transactions, a non-recurring sales loss of approximately one million euro will be realized in Tikkurila Group's 2012 first quarter results.
These divestments are related to the group-wide efficiency program, where numerous restructuring activities have been announced, aiming at enhancing the competitiveness of Tikkurila.