A German company leaves Argentina selling its subsidiary for 1 dollar

The renowned German stationery company, Edding sold its Argentine subsidiary. who takes charge of the marketing of the brand is Facundo Mendizabal, owner of Parallel, an importing company stanley thermosand marketer of other multinationals, such as Avent (Philips) Impulse (Unilever).

“The sale will be effective from March 31, and the transaction will be achieved in a “symbolic purchase price of US$1plus recoverable current assets (inventories and accounts receivable)”, they indicated from edding it’s a statement.

According to what has been reported, the decision to sell is due to a change in your overall strategyI “With the implementation of the 2025+ Strategy, the Edding Group ceased to have a dedicated strategy for the Latin American region at the beginning of 2021,” they explained. They also maintained that “since then, the risks of our activities in Argentina were no longer in balance with the expected benefits and can now be significantly reduced through this sale.”

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Likewise, the company stressed that “despite the only symbolic purchase price and the severance payments, the sale has a positive effect on net worththe financial situation and operating results of the cluster compared to the uncertainty scenario that the company has been experiencing”.

“The loss avoided by 2023, if compared to what had happened with the company in operation, is currently estimated to be in the six-digit range of euros” (between 100 and 500 thousand), they estimated.

The departure of Argentina occurs after that of Brazil, a country he left at the end of last year. There, since 2014, he had a 21% stake in the Brazilian firm Companhia de Canetas Compactor, which he sold to his partners, with a profit of 400,000 euros.

Parallel it employs 44 people and billed US$ 26 million in 2022. It also handles other Unilever products (Pears, Lifebouy, Dove creams) and Chicco.

The reasons behind the departure of more than 22 foreign companies from Argentina

Edding, more than 60 years of history

The Edding company was founded in Hamburg in 1960 and in 2022 had sales revenue of 159.2 million euros, with 735 employees. In addition to markers, it sells whiteboards and electronic displays and tattoo ink, among other things.

MRI / SD