The German company of markers edding sold its Argentine branch to Facundo Mendizabalowner of the Parallel company, known for being the importer of Stanley thermoses, as well as marketer of other multinational brands, such as Avent (Philips) or Impulse (Unilever).
The operation, which will take effect from 31 March, “a symbolic purchase price of 1 US dollar was agreedplus current recoverable assets (inventories and receivables),” Edding said in a statement.
The company’s decision is part of a global strategy, as has happened with other brands, such as Nike, which have made the same move in the region: to leave the management of their products in the hands of third parties, usually local companies.
“With the implementation of the 2025+ strategy, the Edding Group ceased to have a dedicated strategy for the Latin American region in early 2021,” the company explained.
“Since, the risks of our activities in Argentina were no longer balanced with the expected benefits and can now be significantly reduced through this sale. The business will continue with Parallel as a distributor and partner in the Argentine market,” they said.
The company added that “despite the only symbolic purchase price and severance payments, the divestment has a positive effect on the Group’s equity, financial and operating results. compared to the uncertainty scenario that the company had experienced”.
“THE loss avoided by 2023, when compared to what would have happened with the company in business, it is currently estimated in the six-figure range of euros” (between 100 and 500 thousand), estimates Edding.
The departure from Argentina takes place after that of Brazil, a country he left at the end of last year. There, since 2014, he held a 21% stake in the Brazilian company Companhia de Canetas Compactor, which he sold to his partners, with a profit of 400,000 euros.
Edding was founded in Hamburg in 1960 and had revenue in 2022 for a turnover of 159.2 million euros, with 735 employees. In addition to markers, it sells whiteboards, electronic displays, and tattoo ink, among other things.
While, parallel it employs 44 people and has revenues of $26 million in 2022.
The option of abandoning the direct presence and leaving a local distributor who knows more closely the political and economic vicissitudes of Argentina and keeps the brand alive was the model chosen by other companies. Nike and Asics used this system, as well as Shell, who sold his business to the Brazilian rootn (in which he still holds a stake).
Other large companies have also left the country, but by selling all their assets, such as Walmartwhich sold its business to the De Narváez group, i.e. the Italian company Inside which has already sold the Costanera and Dock Sud plants and is looking for a buyer for Edesur.
And finally, there were companies that they have decided to close your local operation, like the Chilean ones Falabella and LANwhich has ceased to operate in the cabotage market, just like Norwegian.
Source: Clarin
