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Systemax has opted to dispose of its non profitable European business, which means it parts company with the Misco operation, as it offloads them to Hilco Capital.
The decision to get rid of the European operations, with the exception of the French business, leaves Systemax now focusing mainly on the US.
The Hilco deal involved Micso management and former Selection Services CEO Alan Cantwell, who has been instrumental in the purchase and buy-in move by the management team.
Hilo has a track record of taking on businesses that need a bit of TLC and turning them around and recently took on Staples UK retail business and it the headlines when it stepped in to save HMV back in 2013.
Cantwell said that the move was a positive one for both Misco and Systemax and would give each firm the chance to sharpen the focus on their core strengths.
“We believe this transaction is a significant step forward for Systemax and Misco, enabling both parties to focus on their respective strengths in industrial products in North America and IT solutions in Europe. We are acquiring a business with huge potential to expand in the European IT services market,” he said.
Chris Emmot of Hilco Capital, said that it would be “putting the business on a new growth pathway” and was confident that the future would be brighter.
The details off the transaction were not disclosed but were closed last Friday, with the public announcement being made today.
Larry Reinhold, CEO of Systemax, said that the decision to part with the Misco operation was part of a wider process of trimming the sails at the firm.
"In the past year we have significantly streamlined our Company by exiting non-strategic and underperforming operations, positioning us to focus on our profitable and growing business segments.,” he said.
“We believe that we have found a good home for our former colleagues in Europe. We thank them for their efforts and wish them the best of luck in their future endeavors. With a simplified and focused operating footprint and a strong cash position, we are well positioned to continue executing on our strategic plan and drive the performance and value of our businesses for our shareholders,” he added.