SCC sells Dutch arm to Misco parent Systemax

Systemax says acquisition of €100m operation will boost its logistics and assembly skills in the Netherlands

SCC has sold its Dutch operations to rival Systemax, reducing its continental European coverage to just three countries.

US-headquartered Systemax – which operates the Misco brand in Europe – last night confirmed it has signed a definitive agreement to acquire SCC Services B.V subject to certain closing conditions.

SCC's Dutch arm saw revenue from continuing operations hit €103m (£84.5m) in the 12 months to 31 March 2013, according to SCC's most recent results. It bought the Utrecht-based business in 2000.

SCC sold off its Italian and German arms in 2009 and exited Belgium in 2011. The Dutch sale will leave it with operations in only four countries: the UK, France, Spain and Romania.

SCC, which is the technology brand of Rigby Group plc, has begun to splash some of the cash it bagged from the SDG divestment, recently acquiring £30m-turnover UK managed print VAR M2 Digital. It is understood SCC's Dutch arm differs from its other operations in that it focuses on distribution and logistics, meaning its face did not necessarily fit with the wider business following its sale of SDG.

Systemax chief executive Richard Leeds claimed the "fragmented" European market "presents tremendous opportunity for growth".

"This acquisition will strengthen our existing presence in the Netherlands, where we already have substantial operations, and allow us to offer our existing customers a much more robust service offering, including remote network monitoring, logistics and assembly, maintenance and managed print services," he said.

Systemax expects the deal, which needs approval from the Netherlands Authority for Consumers and Markets, to close later in Q2. Terms were undisclosed.

Rigby Group COO Steve Rigby said: "We have been very clear that we intend to grow the Rigby Group and be active in the M&A markets. Part of this strategy includes focusing on the core elements of our individual companies. Following the sale of our distribution interests in 2012, the Dutch business of SCC was sub scale for its stated objective of being market leading in its core geographies. This sale now allows SCC to focus on its core markets and this will be further demonstrated with strategic and niche acquisitions during 2014."