Three years after buying Brazilian consumer electronics firm CCE, Lenovo has announced it has sold the company back to its original owners for an undisclosed sum.
Back in 2012, Lenovo agreed to buy CCE for 300 million reais ($77m at the current exchange rate) in a mix of cash and stock. Before buying CCE, the Chinese firm courted other local manufacturers, such as Itautec and Positivo.
The idea at the time was to use the Brazilian manufacturer to execute a "PC+ vision" with a full suite of consumer products across four screens - PC, tablet, smartphone and TV.
Lenovo said in a statement that it has decided to focus on "value-added products", such as its smartphone business, bolstered by the $2,9bn purchase of Motorola last year, as well as its premium range of PCs and servers.
"As part of Lenovo's efforts to improve the operational efficiency and profitability of its PCs business globally and in Brazil, the company has agreed to sell the CCE brand and factory to its previous owners, the family Sverner," the company said.
The CCE manufacturing facility in Manaus has been returned to the family Sverner, who will resume its production activities, while the Chinese fim will keep a factory and a distribution center in the São Paulo countryside.
In the first quarter of 2015, Lenovo was one of the leaders in the Brazilian PC market,according to analyst firm IDC. Some 1.964 million PCs were sold in the first three months of 2015 in Brazil, 20 percent less than in the same quarter in 2014.