Benzinga | Aug 10, 2020 04:53PM EDT

ScanSource Announces Agreement To Sell Latin America Business Outside Of Brazil To Intcomex; Co. Sees $28M Pre-Tax Non-Cash Charge

ScanSource, Inc. (NASDAQ:SCSC) today announced that it has agreed to sell its products businesses in Mexico, Colombia, Chile, and Peru and its Miami-based export operations (the "Latin America business outside of Brazil") to Intcomex. This action is part of ScanSource's strategic portfolio repositioning to align investments with higher-growth, higher-margin businesses, including ScanSource Brazil.

Intcomex is the leading provider of value-added solutions and technology products in Latin America, outside of Brazil, and the Caribbean. It has been in operation for more than 30 years and has a deep understanding of the Latin American distribution market and geography. Its in-depth knowledge of the value-added business model and the channel underscores the company's strong alignment with the ScanSource business.

"After a very thorough process, we are pleased to have found a highly respected, well-established buyer with a proven track record in Latin America," said Mike Baur, Chairman and CEO, ScanSource, Inc. "Our more than 140 employees in Latin America are excited to become part of Intcomex, a company that shares our commitment to long-term partner relationships. Our business in Latin America fits well with the Intcomex business, and I see this as a positive move for our employees, partners and suppliers."

"We welcome our new employees, partners, clients and suppliers," said Mike Shalom, CEO, Intcomex. "The acquisition further solidifies our over thirty-year commitment of local distribution coupled with long-standing supplier and customer relationships."

ScanSource expects its Latin America business outside of Brazil to be classified as "held for sale" at June 30, 2020 and reported as discontinued operations. Related to the "held for sale" classification, ScanSource expects to record a pre-tax non-cash charge of approximately $28 million. The transaction is expected to close by September 30, 2020, subject to the satisfaction of customary closing considerations. The terms of the agreement were not disclosed.