Systemax
| Company type | Public |
|---|---|
| Industry | Industrial supply, Maintenance, repair, and operations (MRO) |
| Predecessor | Global Equipment Company, Global Direct-mail, Systemax |
| Founded | 1949 |
| Headquarters | Port Washington, New York , United States |
Area served | North America |
| Products | Industrial and MRO products |
Global Industrial Company, headquartered in Port Washington, New York, supplies industrial and MRO (maintenance, repair, and operating) products across North America through its proprietary e-commerce platforms and network of relationship marketers. The company's flagship brand is Global Industrial.
Established in 1949 under the name Global Equipment Company, the organization initially specialized in material handling solutions. It entered the direct marketing sector in 1972 and expanded its offerings to include computer equipment by 1981. The company underwent a series of rebrandings: becoming Global Direct-mail in 1995, then Systemax in 1999, before finally adopting the Global Industrial Company name 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. announced it had acquired the Miami-based CompUSA brand, including trademarks, its e-commerce platform, and up to sixteen retail locations situated in Florida, Texas, and Puerto Rico. The inaugural CompUSA store under Systemax's management launched in November 2009.
Acquisition of Circuit City Assets
On May 13, 2009, Systemax purchased Circuit City's intellectual property—comprising trademarks, brand identity, and domain name—for $14 million. This transaction was finalized six days later, leading to the revival of the defunct CircuitCity.com website.
By December 2012, CompUSA and Circuit City operations were merged into TigerDirect,[1] a business that Systemax later divested to PCM, Inc. on December 1, 2015.[2]
WStore Europe Acquisition
Systemax expanded into Europe by acquiring WStore Europe, SA on September 18, 2009. This company supplies business IT products and operates through Inmac WStore SAS and I-Com Software in France as well as WStore UK Limited in the United Kingdom.
Misco Solutions (SCC Netherlands) Acquisition
On June 12, 2014, Systemax acquired SCC Services B.V., a supplier of B2B IT products and services based in the Netherlands. Following this acquisition, the entity was rebranded as Misco Solutions.
Plant Equipment Group (PEG) Acquisition
Systemax further broadened its portfolio on January 30, 2015, by acquiring Plant Equipment Group ("PEG"), a North American direct marketer specializing in maintenance, repair, and operations (MRO) products from TAKKT America.
Divestiture of TigerDirect
On December 1, 2015, Systemax sold select B2B assets within its North American Technology Group—including TigerDirect—to PCM, Inc.
Disposition of German Operations to CANCOM SE
Systemax transferred ownership of its Misco Germany business to CANCOM SE on July 25, 2016.
Sale of European Technology Products Group Businesses
On March 27, 2017, Systemax divested all European Technology Products Group operations except those based in France.
Divestiture of French Information Technology Business
The company finalized the sale of its French IT division to Bechtle AG on September 4, 2018.
Legal Issues
On September 17, 2012, the U.S. Securities and Exchange Commission (SEC) charged former Systemax director Gilbert Fiorentino with fraudulently obtaining over $400,000 in undisclosed compensation between January 2006 and December 2010. Serving also as CEO of Systemax’s Technology Products Group during this period, Fiorentino allegedly accepted additional payments directly from vendors engaged with Systemax and misappropriated corporate merchandise intended for promotional use. He failed to disclose these benefits to both the company and its auditors, resulting in understated disclosures to shareholders.
In April 2011, Systemax placed Fiorentino on administrative leave. By May 9 of that year, he resigned from all roles within the company, relinquished stock options valued around $9.1 million, and reimbursed his $480,000 bonus from 2010. Subsequently, Robert Leeds—the founding CEO of the technology division—assumed leadership of the technology products group.
Fiorentino resolved SEC allegations by paying a $65,000 penalty and agreeing to a permanent prohibition from holding officer or director positions at any publicly traded corporation.
On December 3, 2014, Gilbert Fiorentino and Carl Fiorentino entered guilty pleas relating to a bribery conspiracy. Carl had received kickbacks exceeding $7 million from suppliers contracted by Systemax while concealing his involvement. Gilbert faced further charges including conspiracy to commit securities fraud and obstruction of IRS investigations.
Additionally, on February 21, 2005, Systemax restated its financial statements for the first three quarters of 2004 and for fiscal year ending December 31, 2003 due to inventory accounting discrepancies at its UK subsidiary. A subsequent restatement related to inventory accounting problems at Tiger Direct Inc., its online retail unit, was issued on May 11, 2005.
See also
External links
- Articles with short description
- Companies traded on the New York Stock Exchange
- Business service firms founded in 1949
- Industrial supply enterprises
- Companies located in Nassau County, New York
- 1949 establishments in New York (state)
- Retail businesses in the United States
- Defunct computer companies of the United States
- Pages with reference errors