Ingram Micro is quitting broadline distribution in Denmark, Finland and Norway as part of its global efforts to shave $100-120m from its annual cost base.
The US-based distributor stressed it will continue to forge on with its specialist capture/point-of-sale (DC/POS) business across all four Nordic countries as well as its Swedish broadline business.
The Danish broadline operation will be sold to rival Actebis. Meanwhile, Ingram intends to close down its broadline units in Finland and Norway by the end of the second quarter.
Germany-based Actebis claims to be Europe’s third largest wholesaler of ICT. It currently operates in Austria, Germany, Denmark, France, the Netherlands, Norway and Sweden.
All of Ingram’s broadline employees in Denmark will transfer to Actebis upon closing.
Greg Spierkel, chief executive officer of Ingram, said: "We have been concentrating on enhancing profitability in Europe for several quarters and the restructuring of our Nordic operations is part of this plan.
"While our operations in Denmark, Finland and Norway are small, generating approximately $450m in aggregated revenues for the 2008 fiscal year, they are not meeting our requirements for profitability and return on invested capital. By re-positioning these operations, we are able to build a profitable, stand-alone broad-based business in Sweden, where Ingram Micro enjoys both a solid market position and good growth prospects."
Klaus Hellmich, chief executive of Actebis Group said: “We have taken this good opportunity to strengthen our market position in Northern Europe and have succeeded in establishing a fair agreement with Ingram Micro concerning the acquisition of distribution activities in Denmark. We are very pleased to welcome the Ingram Micro team, and look forward to further growing our business in Denmark through their talent and customer knowledge.”
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