-Would Allow Increased Expansion of Growing Industrial Products Group Business in North America-
Systemax Inc. (NYSE:SYX) today announced it has received an irrevocable binding offer from Bechtle AG, Germany’s largest independent IT systems integrator, to acquire InmacWstore, Systemax’s France-based IT value added reseller business.
Pursuant to the offer, Systemax has the right to sell InmacWstore to Bechtle on the terms specified in the offer, and it has granted Bechtle exclusivity for a limited period. Pursuant to applicable French law, acceptance or rejection of the offer by Systemax will only follow consultation with InmacWstore’s works council, which is expected to take up to several weeks. Upon conclusion of the works council consultation and if the offer is accepted by Systemax, it is expected the parties would enter into a definitive agreement, at which time additional details would be disclosed. The proposed sale would then be subject to customary closing conditions and deliverables, including receipt of France regulatory approvals, and it would be expected to close in late 2018. Disclosure of this offer at this time allows Bechtle to fulfill its disclosure obligations in Germany.
Larry Reinhold, Chief Executive Officer of Systemax, said, “Systemax has been in business in France for many years, commencing with a greenfield operation in 1991 and then significantly expanding our business with the 2009 acquisition of InmacWstore. Our France business has performed extremely well, with organic revenues growing at a compounded annual growth rate (‘CAGR’) of 11.6% from 2012 through 2017. Its success is a direct reflection of the terrific management and associate teams there, and I would like to personally thank Jacques Thefo, president of our business in France, and all of our InmacWstore employees for their exceptional service. We have been evaluating strategic alternatives for our InmacWstore business through a managed bidding process and believe Bechtle would be an ideal fit as they are well respected in the industry by both customers and vendors, have operations across Europe and bring new capabilities that can broaden service offerings.”
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“If the proposed offer is consummated, Systemax would exclusively operate its Industrial Products Group (‘IPG’) business in North America. IPG is a pure play business focused on industrial supplies and MRO (maintenance, repair and operations), markets Systemax has served since its founding in 1949. IPG is a highly successful and rapidly growing business that grew its revenue at a CAGR of 13.7% from 2012 through 2017. If this offer is accepted and closed, we believe the proceeds could be repatriated on a tax efficient basis and would provide Systemax with substantial additional liquid capital to invest in strategic acquisitions for IPG and to return capital to shareholders,” concluded Reinhold.