John Nurminen Family: Ownership Strategy Enabling Business Portfolio Development

Abstract

This case describes the family-owned John Nurminen company business portfolio development in Finland between the years 1871 and 2010. The case describes the portfolio business development and change of ownership in five generations. It details a variety of business-related changes, including business start-ups, company takeovers and sales, joint ventures, business investments, company divisions, and company closures. The case ends with the situation as of 2010 including the reflections of the company and individual ownership structures. The case relies on a rich set of materials: the family and the business history; transcriptions from the interviews with the family members; the Chief Executive Officer; and board members. One question to consider is whether the family policy of keeping ownership rather concentrated and disenfranchising other family members was necessary for business growth and development, or whether it deprived the group of a healthy debate about new entrepreneurial opportunities. It is also notable how the family abandoned their core business several times and started a new one. The main topics on which the case focuses are ownership, business portfolio development, risk management, opportunity recognition, and portfolio management.

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Resources
Appendix: Portfolio business development 1871–2010.

Company

Time

Operation

Main reasons

Riikilä Farm, Johan Matinpoika

1871

Start-up, the creation of a new business

Purchased for timber, business focus on the timber sector

Juso farm.

1876–1879

Acquisition, grasping opportunities, value creation exit

Purchased because of marriage

Nurmi Rustholli Farm Johan Nurmi

1879–1886

Acquisition, grasping opportunities, value creation exit

Purchased for timber

Aaltola retail business. John Nurminen

1886–1912

Start-up, creation of new business exit

Industry wholesale and retail trade, shipping, new business field

John Nurminen Ltd.

1913– 1922

Restructuring, actual business starts, creation of new business exit

Business, shipping, timber and wholesale trade

Forwarding Raumo Stevedoring Ltd.

1914–1958

Start-up, creation of new business, joint venture, grasping opportunities, exit

New business field forwarding, together with three business partners, shared business risk

Shippping Ltd. Pyhäjärvi

1914–1918

Start-up, creation of new business, joint venture, exit

Expansion in the field, new company with three business partners, shared business risk,

Steamship Ltd. Otava

1916

Start-up, creation of new business, family,

New ships, new company with family members

Länsi-Suomen Tukkukauppa Ltd. 1957 Riisla Ltd.

1917–

Merge, value creation, supporting business

Friendship with founder, shareholder,

Nurminen G.m.b.H. company.

1919–1923

Start-up, internationalization, exit

Subsidiary abroad,

Hotel & Restaurant de Paris

1920–1922

Acquisition, company take over, exit

Due to debt pledge

Suomen Mylly Ltd.

Not known

Start-up, creation of new business, value creation

Founder, shareholder, supporting business

Suola Ltd.

1922–1943

Start-up, creation of new business, value creation, exit

Founder, shareholder, supporting business

Marin Ltd.

Not known

Start-up, creation of new business, value creation

Founder, shareholder, supporting business

Rauman Rauta Ltd.

Not known

Start-up, creation of new business, value creation

Founder, shareholder, supporting business

Raahen Laiva Ltd.

1919

Start-up, business merger, joint venture

Founder, shareholder, friendship

John Nurminen Tmi

1932–1969

Start-up, dissension, value creation, exit

Founder, re-starting business, real estate, family

John Nurminen Ltd.

1932–

Start-up, future core business

Re-starting business, family, friendship

Huolintakeskus Ltd.

1920–1952

Alliance, co-operation, internationalization, exit

Shareholder, shared business risk,

Travel agency Kaleva Ltd.

1935–2001

Start-up, creation of new business, value creation, exit

Shareholder, family, individual interest

Lassen Grhardt & Hey A/G

1937

Alliance, co-operation, internationalization

Business focus

Laiva Ltd. Rauma

1937–

Start-up, value creation

Founder, shareholder, re-entering shipping

Laiva Ltd. Fennia Stemship Co Ltd.

1939–

Start-up, value creation

Founder, shareholder, family

F.W. Moorsom & Co. Ltd.

1939

Alliance, co-operation, internationalization

Business focus

Laiva Ltd. Laine

1939–

Start-up, value creation

Business focus

Laiva Ltd. Kaleva

1939

Start-up, value creation

Business focus

Haminan Laivaus Ltd.

1943–1949

Joint venture, value creation, co-operation, exit

Shareholder, business focus

Ahtaus Ltd. Prompt (subsidiary)

1943–1949

Joint venture, value creation, co-operation, exit

Shareholder, business focus

Saastamoinen lumberyard (Kotkan Laivaus Ltd.)

1943–1947

Joint venture, value creation, co-operation, exit

Shareholder, business focus

Ltd. Shipbroker Ab

1943–1947

Joint venture, value creation, co-operation, exit

Shareholder, business focus

Fredrikshamn Stevedoring Ltd.

1943–1947

Joint venture, value creation, co-operation, exit

Shareholder, business focus

Laiva Ltd. Laila

1946

Start-up, value creation

Business focus

Hertell & Co. Ab

1953

Acquisition, company takeover

Strengthen business operations

Helsingin Huolinta Ltd.

1953

Acquisition, company takeover

Strengthen business operations

Satama Huolinta Ltd.

1953

Acquisition, company takeover

Strengthen business operations

Vakava Ltd.

1955

Acquisition, company takeover

Strengthen business operations

Huolinta Ltd. Notracon

1955

Acquisition, company takeover

Strengthen business operations

Grundström & Heinrichs Ltd.

1956–1958

Joint venture, value creation, co-operation, internationalization, exit

Strengthen business operations, shareholder

Polar-Expres Ltd.

1960–1986

Start-up, creation of new business, alliance, joint company, co-operation, business merge, exit

Founder, shareholder, supporting business

Travel agency Area Ltd.

1959

Joint venture, value creation, co-operation, grasping opportunities

Business focus,

shareholder, personal interest

Aero Ltd.

1923 (found)

joint venture, value creation, co-operation

Shareholder, supporting business, personal interest

Travel agency STA

1965 (bought)

Joint venture, value creation, co-operation

Shareholder, supporting business, personal interest

Aurinkomatkat Ltd.

1962

Start-up, creation of new business, value creation, co-operation,

Founder, shareholder, shared business risk, personal interest

John Nurminen Varastot Ltd.

1965

Start-up, creation of new business, value creation, co-operation

Founder, shareholder, shared business risk

Handling Ltd. (Karhuntalja Ltd.)

1967

Acquisition, company takeover, grasping opportunities

Strengthen business operations, entering new business field

Ehnroth Ltd.

1975

Joint venture, value creation, co-operation, grasping opportunities

Strengthen business operations, entering new business field

Suomen Huolinta Ltd.

1975

Acquisition, company takeover

Strengthen business operations

Ehnroth Stevedoring Ltd.

1975

Acquisition, company takeover

Strengthen business operations

Lindblom & Petersen Ltd.

1975

Acquisition, company take over

Strengthen business operations

Finlands Cyberneticds Ltd.

1970–1981

Joint venture, grasping opportunities, value creation, exit

Shareholder, new business field, supporting business, personal interest

Fennocargo Ltd.

1977

Start-up, creation of new business, grasping opportunities, value creation,

Founder, shareholder, supporting business,

Fennoload Ltd.

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Turku Stevedoring Ltd.

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Turun Terminaali Ltd.

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Container Handling Ltd.

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Tampereen Terminaali

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Tampereen Kuljetus ja huolinta

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Neontrans Ltd.

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Seinäjoen Terminaali Ltd.

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Kotka Shippping Service Ltd.

1977

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, strengthen business operations

Finnsped Ltd.

1981

Acquisition, company takeover, grasping opportunities

Strengthen business operations

Tietosavo Ltd.

1981

Joint venture, value creation, co-operation

Shareholder, supporting business

Helsingin Satamatyönjohto Ltd.

1985

Start-up, creation of new business, co-operation

Founder, shareholder, supporting business

Merikarvian Liikenneyhtiö Ltd.

1985

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

Luonnonmaan Terminaalit Ltd.

1985

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

Vaasan Terminaali Ltd.

1985–1992

Acquisition, company takeover, grasping opportunities, exit

Strengthen business operations, supplemented business

Loviisa Shipping Ltd.

1985–2007

Acquisition, company takeover, grasping opportunities, exit

Strengthen business operations, supplemented business

Suomen Rahtia Ltd.

1987–1990

Joint venture, value creation, co-operation, exit

Shareholder, strengthen business operations

P. Lumiaho Ltd.

1987

Acquisition, company takeover, grasping opportunities

Strengthen business operations

Kiitoliikenne Hellberg Ltd.

1987–1988

Joint venture, value creation, co-operation, exit

Shareholder, strengthen business operations

Vaanto Ltd.

1987

Joint venture, value creation, co-operation

Shareholder, strengthen business operations

Jukka Silvasti Ltd.

1988–1992

Acquisition, company takeover, grasping opportunities, exit

Strengthen business operations, supplemented business

Prima Ltd.

1990–1998

Start-up, value creation, restructuring, exit

Founder, personal interest, supporting business, strong family focus

Family foundation

1992

Start-up, social values, family values, individual values

founder, personal interest, family values

FIMAC

1993–1998

Start-up, value creation, restructuring, exit

Founder, personal interest, supporting business, strong family focus

Nurminen Deepsea Ltd.

1993–1998

Start-up, value creation, restructuring, exit

Founder, personal interest, supporting business, strong family focus

Mascot Maritime Shipping Ltd.

1993–1998

Start-up, value creation, restructuring, exit

Founder, personal interest, supporting business, strong family focus

Nurminen Ground Service Ltd.

1992–2000

Start-up, restructuring, exit

Founder, strengthen business operations

ASG Nurminen Ltd.

1993–1995

Start-up, co-operation, exit

Strengthen business operations

Nurminen Shipping Ltd.

1993–2000

Start-up, restructuring, exit

Founder, strengthen business operations

Nurminen Cargo Handling Ltd.

1993

Start-up, restructuring, exit

Founder, strengthen business operations

Travel agency K Viro

1995

Joint venture, value creation, co-operation, internationalization

Shareholder, strengthen business operations

Cosfim Ltd.

1995

Joint venture, value creation, co-operation, grasping opportunities

Shareholder, shared risk, strengthen business operations

Aviation Center Ltd.

1995–1998

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

Road Transport Ltd.

1995

Acquisition, grasping opportunities

Strengthen business operations, supplemented business

Nurminen Matkat Ltd.

1995–1998

Start-up, creation of new business, grasping opportunities, exit

Strengthen business operations

Nurminen Border Services Ltd.

1995–1999

Start-up, creation of new business, grasping opportunities, exit

Strengthen business operations

Saimaa Lines Ltd.

1995

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

JN Uljas Ltd.

1998

Start-up, value creation

Founder, investing company

IVO Tuotantopalvelut Ltd.

1998

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

Maripe Ltd.

1998

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

Travel agency Travek Ltd.

1998

Acquisition, grasping opportunities

Strengthen business operations, supplemented business

Nurminen Airport Service Ltd. NAS

1998–2000

Start-up, creation of new business, value creation, co-operation, exit

Founder, shareholder, shared business risk

Kotkan Truck Service Ltd.

2000

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

Nurminen TransMec Ltd.

2000–2003

Start-up, restructuring, exit

Founder, strengthen business operations

Pekkolan Terminaali Ltd.

2000

Joint-venture, value creation, co-operation

Shareholder, strengthen business operations

Huolintakeskus Ltd.

2000

Acquisition, company takeover, grasping opportunities

Strengthen business operations, supplemented business

Aw-Energy Ltd.

2002

Investment, value creation, new business field

Shareholder, personal interest, investment

Atlans Ltd.

2003

Acquisition, company takeover, value creation 3

Strengthen business operations, supplemented business

Kuljetusliike Pihlapuro Ltd.

2003

Acquisition, company takeover, value creation

Strengthen business operations, supplemented business

Turku Stevedoring Ltd.

2003

Joint-venture, value creation, co-operation

Shareholder, strengthen business operations

V.M. Tikkinen Ltd.

2003

Acquisition, company takeover, value creation

Strengthen business operations, supplemented business

Russian ZAO Irtrans

2005

Joint venture, value creation, co-operation

Shareholder, strengthen business operations

Scandinavian Biogas Fules Ltd.

2005

Investment, value creation, new business field

Shareholder, personal interest, investment

Skandia Transport Ltd.

2006

Acquisition, company takeover, value creation

Strengthen business operations, supplemented business

Avelon Group Ltd.

2006

Joint venture, value creation, co-operation

Shareholder, strengthen business operations

John Nurminen Prima Ltd. (subsidiary)

2006

Start-up, value creation, restructuring

Founder, personal interest, supporting business, strong family focus

John Nurminen Realty Ltd. (subsidiary)

2006

Start-up, value creation, restructuring

Founder, personal interest, supporting business, strong family focus

Nurminen Care

2006-2008

Start-up, creation of new business, value creation, exit

Founder, shareholder,

Helsinki Paramedic and ambulance Ltd.

2006

Joint-venture, value creation, co-operation

Shareholder, strengthen business operations

Varsinais-Suomen ambulance Ltd.

2006

Joint-venture, value creation, co-operation

Shareholder, strengthen business operations

Porvoo Ambulance services Ltd.

2006

Joint-venture, value creation, co-operation

Shareholder, strengthen business operations

Abyss Art Ltd.

2007

Start-up, creation of new business

Founder, strong personal interest

Kasola Corporation

2008

Acquisition

Access to the Helsinki Stock Exchange

Kaso Ltd.

2008

Investment, value creation

Shareholders

Nurminen Logistics Corporation

2008

Start-up, restructuring, value creation

Founder, business deformations, strong business value

John Nurminen Ltd.

2008

Start-up, restructuring, value creation

Founder, business deformations, strong family value

John Nurminen Marine Ltd. (subsidiary)

2008

Start-up, restructuring, value creation

Founder, business deformations, strong family value

Hoffmanco International Ltd.

2008

Investment, value creation, new business field

Shareholder, personal interest, investment

Pac-Solution Ltd.

2008

Investment, value creation, new business field

Shareholder, personal interest, investment

John Nurminen Classics Ltd.

2010

Start-up, restructuring, value creation

Founder, business deformations, strong family value

Boistö Ab

2010

Start-up, creation of new business, value creation, family

Founder, strong personal interest, family members

Summary of operations and drivers

47 start-ups

32 acquisitions

15 restructurings

4 alliances

33 joint ventures

5 Investments

38 exits

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