Further expands wireless, optical, communications, industrial and
digital home application product lines and strengthens presence in China
and Hong Kong
PHOENIX--(BUSINESS WIRE)--
Avnet,
Inc. (NYSE:AVT)
announced today that it has agreed to acquire the shares of RTI
Holdings Ltd., a value-added distributor of wireless, optical,
telecom, data communications, and industrial components in Hong Kong and
the People's Republic of China (PRC). In addition, Avnet will also
acquire the shares of three related entities, RTI Technology China
Limited, Eastele Technology China Limited, and DSP Solutions Limited.
This transaction has received all necessary regulatory approvals and is
expected to close in the next 30 days.
"This acquisition is important to Avnet Electronics Marketing as the
combination of RTI's focused technical expertise and Avnet's scale and
scope further strengthen our competitive edge as we continue to grow in
Asia," said Harley Feldberg, president Avnet Electronics Marketing.
"This transaction also complements our existing offerings of product
lines and allows us to expand our value proposition to our customers.
With the addition of talented employees from RTI, I am sure we will be
able to tap deeper into additional markets yet to be explored."
Founded in 1989 and headquartered in Hong Kong, RTI has a strong
presence in China serving over 700 customers across a range of end
markets including telecom and datacom, industrial and digital home
applications. The company has over 120 sales/FAE/CS employees that
provide application engineering services, technical support and sales
promotion activities to high-tech manufacturing firms across the region.
The company generated revenue of approximately US $80 million in the
2012 calendar year. This acquisition, which will be integrated into
Avnet Electronics Marketing, Asia is expected to be immediately
accretive to earnings and supports Avnet's return on capital goal of
12.5%.
"China remains a high priority and key strategic focus for Avnet
Electronics Marketing. The acquisition of RTI not only expands our
market coverage in industrial, telecom, optical and datacom but it also
strengthens our demand creation resources," said Stephen Wong, president
Avnet Electronics Marketing, Asia. "RTI is a reputable player in the
region delivering a breadth of engineering services from basic circuit
design to total product solutions. The addition of RTI will further
complement our strategic vision of providing best-in-class products and
services to our customers in a critical growth region for Avnet."
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
Avnet generally.
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.
About Avnet
Avnet, Inc. (NYSE:AVT),
a Fortune 500 company, is one of the largest distributors of
electronic components, computer products and embedded technology serving
customers globally. Avnet accelerates its partners' success by
connecting the world's leading technology suppliers with a broad base of
customers by providing cost-effective, value-added services and
solutions. For the fiscal year ended June 30, 2012, Avnet generated
revenue of $25.7 billion. For more information, visit www.avnet.com.
(AVT_IR)
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at investorrelations@avnet.com.
Investor Relations Contact:
Avnet, Inc.
Vincent Keenan
480-643-7053
Vice
President, Investor Relations
vincent.keenan@avnet.com
or
Public
Relations Contact:
Avnet, Inc.
Michelle Gorel
480-643-7653
Vice
President, Public Relations
michelle.gorel@avnet.com
Source: Avnet, Inc.
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