Ingram Micro exits two Nordic countries, sells operations in another

Ingram Micro Inc. is restructuring some of its Nordic operations, which will lead to the closure of operations in some countries and the sale of its Denmark business.

Ingram Micro is making the moves "to position the company for greater profitability," according to the US based distributor.

After the restructuring, Ingram Micro will have closed its IT distribution business in Finland and Norway, but keeping that business based in Sweden, as well as its data capture/POS business in four Nordic countries.

The Danish operation is being sold to German-based Actebis Group for an undisclosed amount, and is expected to close in the third quarter, according to Ingram Micro.

"We have been concentrating on enhancing profitability in Europe for several quarters and the restructuring of our Nordic operations is part of this plan," said Greg Spierkel, CEO of Ingram Micro, in a statement. "While our operations in Denmark, Finland and Norway are small, generating approximately $450 million in aggregated revenues for the 2008 fiscal year, they are not meeting our requirements for profitability and return on invested capital."

Ingram Micro's Swedish business is profitable and has potential for more growth, Spierkel added.

The distributor expects to incur costs of about $45 million to $65 million as a result of the restructuring, but realize annualized savings that are part of a worldwide restructuring plan to save between $100 million and $120 million, according to the company.

See original article on CRN.com