Systemax sells off Misco to Hilco Capital

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Systemax has shed itself of its unprofitable European Technology Business Group arm (known as Misco), selling it to Hilco Capital.

The sale, which closed last Friday, will see Systemax keep hold of its VAR business in France, and its MRO business in the US, called IPG.

Hilco's management buy-in team and ex-Selection Services CEO Alan Cantwell will now form a new company to formally acquire Misco from Hilco, which specialises in acquiring "stressed and distressed" companies that it then restructures.

Misco, which sells IT hardware, software and services to businesses and public sector organisations in Europe, has a turnover of more than $500 million with 1,000 staff spread across the UK, Italy, Netherlands, Spain, Sweden and Hungary.

Cantwell said: "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."

Systemax CEO Larry Reinhold added: "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."