ScanSource Inc. today announced that it will sell some of its businesses outside of the United States, Canada and Brazil. ScanSource will continue to operate and invest in its digital distribution business internationally, including its recent acquisitions of Inty, Canpango and Intelisys Global, according to a news release.
The ScanSource news release did not say which businesses and locations would be affected, but some of that information will be divulged in a conference call later today.
The plans to sell some of its businesses are part of a strategic portfolio repositioning to align investments with higher-growth, higher-margin businesses for the Greenville-based company, the release said.
“After considering our strategic options, we decided that the planned divestitures would offer opportunities to accelerate our profitable growth and cash flow,” Mike Baur, chairman and CEO of ScanSource Inc., said in the news release. “These actions will enable us to focus our investments on our higher-growth and higher-margin businesses in the United States, Canada and Brazil, as well as our digital businesses globally. This will give investors increased insight into our long-term growth opportunities.”
The planned divestitures, comprised of nondigital distribution businesses in Europe, the United Kingdom, Mexico, Colombia, Chile, Peru and the Miami-based export operations, had net sales of $623 million for fiscal year 2019 and at June 30, had working capital of $205 million, according to the news release. About 490 employees work for the company in the areas affected by the potential sales and the news release said ScanSource will communicate regularly with its employees on the sales process.