Dexco (DXCO3) sells electric showers and taps operation – Money Times


Dexco

Dexco sells electric showers and taps operation (Image: Pixabay)

A Dexco (DXCO3) signed this Tuesday (1) a contract for the sale of the electric showers and taps operation to Zagonel, according to the company's relevant fact sent to the Securities and Exchange Commission (CVM).

Dexco estimates an impact on its third quarter results of around R$100 million, relating to operational impairments, with no effect on cash and classified as non-recurring.

Dexco Hydra Corona Water Heating Systems comprises a manufacturing unit with a production capacity of around 12 million pieces annually, distribution centers in Aracaju (SE) and Tubarão (SC) and the Corona and Thermosystem brands.

The Hydra brand was not sold and will continue to be used across the Dexco product portfolio, the company announced.

Founded in 1989, Zagonel is headquartered in Santa Catarina and manufactures products in the water heating and lighting segment, as well as providing lighting installation and maintenance services.

The completion of the operation depends on the fulfillment of suspensive conditions, including approval of the Acquisition by the Administrative Council for Economic Defense (Cade).

Dexco stated that “such a move is part of its ongoing strategic assessment of the company's business and product portfolio, ensuring its commitment to maximizing value for its shareholders in the long term”.

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