Avnet, Inc. Announces Agreement to Acquire ROUND2 Technologies, Expanding Its Reverse Logistics Capabilities
Avnet, Inc. (NYSE:AVT) announced today that it has entered into a
definitive agreement to acquire ROUND2 INC. and its parent Round2
Technologies, Inc. ("ROUND2"). The acquisition has been approved by the
Boards of Directors of both companies and is subject to the approval of
ROUND2's shareholders as well as customary closing conditions. The
transaction is expected to close on January 3, 2012.
ROUND2 is a national provider of integrated and customizable recycling
services, offering vertically integrated solutions through electronics
testing and repair, product disassembly and commodity recycling. From
its facilities in Texas, Ohio and Georgia, ROUND2 delivers 100% green
compliant, comprehensive and transparent solutions for handling large
volumes of electronic disposal for its Fortune 1000 clients. For the
calendar year 2010, ROUND2 generated revenue of approximately US$40
million. ROUND2 will become part of Avnet Integrated Resources, which
provides reverse logistics and after-market services to the global
"The acquisition of Round2 Technologies is important to Avnet, as it
complements our strategy to offer a total solution to the after-market
services industry. With ROUND2's strong presence and capabilities in
e-waste disposal, coupled with our other announced acquisitions, we can
now offer call center services, repair and refurbishment, including
complex repairs, and environmentally responsible disposal of those
assets that no longer have usability," stated Steve Church, President,
Avnet Integrated Resources.
The investment is expected to be immediately accretive to earnings and
supports Avnet's return on capital goal of 12.5%.
Avnet, Inc. (NYSE:AVT), a Fortune 500 Company, is one of the
largest distributors of electronic components, computer products and
embedded technology serving customers in more than 70 countries
worldwide. Avnet accelerates its partners' success by connecting the
world's leading technology suppliers with a broad base of more than
100,000 customers by providing cost-effective, value-added services and
solutions. For the fiscal year ended July 2, 2011, Avnet generated
revenue of $26.5 billion. For more information, visit www.avnet.com.
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at firstname.lastname@example.org.
Forward Looking Statements
This press release contains certain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements are based on management's current expectations and are
subject to uncertainty and changes in facts and circumstances. The
forward-looking statements herein include statements addressing future
financial and operating results of Avnet and may include words such as
"will," "anticipate," "expect," believe," "intend," and "should," and
other words and terms of similar meaning in connection with any
discussions of future operating or financial performance or business
prospects. Actual results may vary materially from the expectations
contained in the forward-looking statements.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the Company's ability to retain and grow market share and to
generate additional cash flow, risks associated with any acquisition or
disposition activities, the successful integration of acquired
companies, any significant and unanticipated sales decline, changes in
business conditions and the economy in general, changes in market demand
and pricing pressures, any material changes in the allocation of product
or product rebates by suppliers, allocations of products by suppliers,
other competitive and/or regulatory factors affecting the businesses of
More detailed information about these and other factors is set forth in
Avnet's filings with the Securities and Exchange Commission, including
the Company's reports on Form 10-K, Form 10-Q and Form 8-K. Except as
required by law, Avnet is under no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Michelle Gorel, +1 480-643-7653
President, Public Relations
Vincent Keenan, +1 480-643-7053
Source: Avnet, Inc.
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