SCC divests German and Italian businesses

SCC headquarters in Birmingham

Pan-European integrator SCC has offloaded its Italian and German subsidiaries as it looks to focus on profitability.

The privately-owned Birmingham-based firm, part of the SCH Group, has sold its trading business in Germany to Burotex Systemhaus, and its Italian trading business to the Bartolini Progetti Group.

Both businesses will retain the SCC brand until 31 October 2009. SCH stressed it will still work closely with both firms to “drive international opportunities”.

The move leaves SCC with a presence in the UK, Ireland, France, Netherlands, Belgium, Spain, Romania and Denmark, and a presence in Germany and Italy through the new owners.

In a statement, Sir Peter Rigby, chief executive of SCH, said: “In the current trading climate, our focus is on maintaining our track record of profitable organic growth, which may be underpinned by transactions, sale or acquisition. For this reason we have made the decision to sell SCC Germany and SCC Italy.

“We will work in close partnership with the new management teams, with the aim of generating international business opportunities.”

An SCC representative confirmed that all the staff of both subsidiaries will be kept on by the new owners.

Rigby added that the firm was in for a strong performance for its financial year to 31 March 2009, and is expected to post a 17 per cent increase in turnover.

“In spite of the global economic downturn, group revenues are robust,” he said.

Alastair Edwards, senior analyst at Canalys, said it was a significant announcement.
“It is a sign that the channel is having to scale back and has far less appetite for growing volume business and more of a focus on cutting costs and reducing exposure to poorer performing parts of the business," he said.

One market watcher, who asked to remain anonymous, said times were tough for firms with a European presence.

“Management of European operations has been difficult for many corporate resellers and distributors. The downturn has exacerbated matters,” he said. “Country managers are notorious to deal with and local culture and commercial practice makes the learning curve fraught.”