Global Industrial Company
| Industry | Industrial supply, MRO products |
|---|---|
| Predecessor | Global Equipment Company, Global Direct-mail, Systemax |
| Founded | 1949 |
| Headquarters | Port Washington , United States |
Area served | North America |
| Products | Industrial and MRO products |
Global Industrial Company, headquartered in Port Washington, New York, specializes in supplying industrial and MRO (maintenance, repair, and operating) products through its proprietary e-commerce platforms and network of relationship marketers throughout North America. The company’s flagship brand is Global Industrial.
Established in 1949 under the name Global Equipment Company, the organization originally concentrated on material handling solutions. It ventured into direct marketing by 1972 and broadened its offerings to include computer equipment sales by 1981. The company underwent several rebrandings: becoming Global Direct-mail in 1995, then Systemax in 1999, before adopting the current name Global Industrial Company in 2021.
Subsidiaries and Divisions
Among its significant subsidiaries are Nexel, Infotel, C&H Distributors, and Avenue Industrial Supply Company.
CompUSA Acquisition
On January 6, 2008, Systemax Inc. revealed its acquisition of the CompUSA brand based in Miami, including the trademarks, e-commerce operations, and up to sixteen retail locations across Florida, Texas, and Puerto Rico. The first CompUSA store under Systemax's management launched in November 2009.
Circuit City Trademarks and Website Acquisition
Systemax purchased Circuit City's intellectual property—comprising trademarks, brand identity, and domain—for $14 million on May 13, 2009. The transaction was finalized six days later, leading to the revival of the defunct CircuitCity.com website under Systemax’s stewardship.
In December 2012, CompUSA and Circuit City were merged into TigerDirect, which Systemax later sold to PCM, Inc. on December 1, 2015.
WStore Europe Acquisition
On September 18, 2009, Systemax expanded into Europe by acquiring WStore Europe SA, a business IT product supplier operating through Inmac WStore SAS and I-Com Software in France and WStore UK Limited in the United Kingdom.
Misco Solutions (SCC Netherlands) Acquisition
Systemax acquired SCC Services B.V., a Dutch B2B IT products and services provider, on June 12, 2014. This entity was subsequently rebranded as Misco Solutions.
Plant Equipment Group (“PEG”) Acquisition
On January 30, 2015, Systemax enhanced its industrial product offerings by acquiring Plant Equipment Group ("PEG"), a North American B2B direct marketer specializing in MRO products from TAKKT America.
TigerDirect Divestiture
Systemax divested certain assets of its North American Technology Group, including TigerDirect, to PCM, Inc. on December 1, 2015 as part of a strategic refocus on its core technology business.
German Operations Sale to CANCOM SE
As part of restructuring efforts within Europe, Systemax sold its Misco Germany operations to CANCOM SE on July 25, 2016.
Disposition of European Technology Products Group Businesses
On March 27, 2017, Systemax divested all European Technology Products Group businesses except for its French operations to concentrate resources on profitable North American industrial products and IT sectors in France.
Sale of French-based Information Technology Business
The company completed the sale of its France-based IT division to Bechtle AG on September 4, 2018, further aligning its geographic presence and operational priorities.
Legal disputes
On September 17, 2012, the U.S. Securities and Exchange Commission (SEC) accused former Systemax director Gilbert Fiorentino of fraudulently receiving more than $400,000 in undisclosed compensation between 2006 and 2010. Fiorentino, who had served as CEO of Systemax's Technology Products Group, was also implicated in the unauthorized appropriation of company merchandise used for promoting Systemax products. He neglected to report these benefits, resulting in an understatement of the amounts disclosed to shareholders.
Systemax placed Fiorentino on administrative leave in April 2011. By May of that year, he resigned from all his roles, relinquished stock and options valued at approximately $9.1 million, and reimbursed his $480,000 bonus from 2010. Robert Leeds, the founding CEO of the technology division, took over his responsibilities.
To resolve the SEC allegations, Fiorentino agreed to pay a $65,000 penalty and accepted a lifetime prohibition from holding officer or director positions at any publicly traded company.
On December 3, 2014, both Gilbert and Carl Fiorentino admitted guilt in connection with a bribery scheme involving over $7 million in kickbacks Carl received from suppliers engaged in contracts with Systemax. Additionally, Gilbert faced charges related to conspiracy for securities fraud and interference with IRS operations.
Restatement
On February 21, 2005, the company revised its financial statements for the first three quarters of 2004 as well as for the fiscal year ending December 31, 2003, due to errors in inventory accounting within its UK division. Subsequently, on May 11, 2005, Systemax restated its 2004 financial results after discovering similar inventory accounting discrepancies at Tiger Direct Inc., its online retail subsidiary.