Reconext, previously known as 4L, is an industry leader in providing reverse logistic solutions to wireless and electronics customers. Established in 2011 thru a series of acquisitions, Reconext is a global provider of device life-cycle management. Reconext services customers across multiple segments, from wireless carriers to hardware OEMs. The company offers high-tech repair, remanufacturing, and reclamation capabilities thru its global network of facilities.
Insight & Approach
Reconext filed for bankruptcy in 2019 as a result of an unexpected large customer loss. Vector saw an opportunity to quickly build a sizable minority position at attractive, distressed prices. Through the bankruptcy process, Vector steered the Company through the sale of their imaging business, ~50% of sales. With the proceeds of the Imaging sale, Reconext was able to pursue and close on the acquisition of Teleplan, a European competitor, doubling the size of the remaining business. The highly complex restructuring created a unique opportunity to create value, diversify the customer base and maintain scale in their core business after the customer loss.
Vector Value Add
Vector currently holds three of the seven board seats.The board is composed of Vector Operating partners who are helping the business optimize the cost structure and extract synergies from the purchase of Teleplan.