7/31/2009 10:15:00 AM
Regenersis poised to buy up TRS as repairs market dwindles
Discussions over an acquisition or partnership between repair giants Regenersis and Total Repair Solutions (TRS) are understood to be taking place, with a deal concluding this week.
Repair industry sources claimed Pan-European service centre Regenersis is looking to buy Scottish based TRS in order to boost the volume of handsets it processes. This would increase its scale and consequently its profit margins in the increasingly tough repairs industry.
It is thought the two companies, which both handle repairs and recycling, have stepped up dialogue in recent weeks as business dwindles in the repairs market.
Regenersis’ environmental services segment provides end-of-life solutions for handsets including the replacement of equipment in the event of damage, loss or theft, as well as the collection, remarketing and recycling of broken equipment.
Sources close to Regenersis claimed the company is now processing a third of the 130,000 handsets it is capable of, due to cost-cutting measures by retailers and networks.
Service centres are feeling the strain as retailers and network stores cut back by withdrawing the swap out option for customers in store. Earlier in 2009, Vodafone withdrew its 14 day no quibble returns policy.
Meanwhile, manufacturers have taken on repairs, with Samsung currently looking to award a service centre with the job of providing support functions for it 20 to 30 Care Points. It is thought Nokia scrapped plans to cut around 80% of its service centres due to mounting responsibility.
Regenersis Plc, previously Foneback, rebranded after acquiring repairs company CRC in January 2007. In addition to repairs, the company manages 80-100 (around half) of Nokia Care Points (NCPs).
TRS employs around 600 employees. Owner and famous Scottish entrepreneur Richard Emanuel has amassed a fortune in the mobile communications industry. Emanuel sold his mobile chain, DX Communications, to O2 after building it up from a £3,000 loan.
Both companies declined to comment.