Systemax Inc., a Port Washington-based distributor of industrial and technology products, said its French technology distribution arm was sold to a German technology systems integrator for $246 million.
The company, which distributes products through websites in North America and France, also reported that net income from continuing operations for the second quarter fell to $17.8 million, or 47 cents per diluted share, from $19.3 million – 52 cents per diluted share – during the same quarter last year.
Systemax reported that sales for the quarter ended June 30 grew by 16 percent year-over-year to $363.1 million.
“We delivered another quarter of strong financial performance as our industrial and France businesses posted double digit revenue increases and strong cash flow generation,” Larry Reinhold, chief executive of Systemax, said in a statement.
Last month, the company said it had received an “irrevocable” bid from Neckarsulm, Germany-based Bechtle AG to buy Sysetmax’s French operation. Once the deal is complete, the company will be left with its North American operations supplying industrial products, maintenance and repair.
“We will be solely focused on the growth of industrial where we are making further investments to enhance its competitive position, expand the value we bring to our customers and position it for further success,” Reinhold said in a statement.
Additionally, the company declared a cash dividend of 11 cents per share payable on August 20 to stockholders of record at the close of business on August 13.
Shares of Systemax, which trade on the New York Stock Exchange, fell 11.9 percent on Thursday to close at $40.58. The company reported its quarterly financials late Tuesday.