Significantly Expands Presence in Embedded Computing and Display
Solutions
PHOENIX--(BUSINESS WIRE)--
Avnet,
Inc. (NYSE:AVT)
announced today that it has entered into an agreement to acquire MSC
Investoren GmbH ("MSC Group"), a European distributor focused on
electronic component distribution, embedded computing technology and
display solutions. The agreement details a two-step approach whereby
Avnet will acquire a majority interest in MSC Group after regulatory
approval has been granted with the intent to acquire the remainder of
the company within a short time frame.
MSC Group is a recognized value-added distributor that leverages its
unique combination of distribution, production and system integration
capability to address the emerging customer demand for more complex
electronic products. The company generated revenue in excess of US$450
million in the 2012 calendar year, with embedded computer technology
(including display solutions) accounting for almost 50% of its sales.
Harley Feldberg, president of Electronics Marketing Global, commented,
"The addition of the MSC Group is a strong fit with our strategy to
invest in margin enhancing acquisitions that complement our existing
design and supply chain services, while also expanding growth
opportunities in the region. With extensive engineering resources and a
strong focus on design-in services, the MSC Group has built a solid
reputation as a single source for complete solutions serving customers
in the European industrial electronics market. By leveraging the
combined skills of both organizations, we will be well positioned to
better serve the needs of our customer base in the region."
Founded in 1979, MSC Group has grown to be a consultative partner to
customers in the automotive, industrial automation, telecom, information
systems and medical device markets. MSC Group's logistics and
distribution capabilities, along with its competence in board-level
assemblies and system integration, allows it to address customers'
demand profiles along the electronics value chain. With a team of field
application engineers and product specialists, MSC Group provides a
range of technical support throughout the entire product development
chain from design to finished system. The operations of MSC Group will
be integrated into the European business region of Avnet's Electronics
Marketing operating group.
Patrick Zammit, president of Electronics Marketing EMEA, added, "MSC
Group's distribution portfolio is a complementary fit with our core
business that improves our offerings in microcontrollers, memory,
programmable logic, opto and LED products. The embedded computing and
display solutions businesses enhance our competencies in systems level
solutions, thereby increasing our value add with customers in these
higher growth product segments. We are excited about MSC Group and its
talented employees as this represents another step in our business
evolution as we progress up the technology value chain and provide
additional services that our customers need."
This transaction, which is subject to customary regulatory approvals, is
expected to be immediately accretive to earnings and supports Avnet's
long-term return on capital goal of 12.5 percent.
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 Electronics Marketing EMEA
Georg
Steinberger, +49 (0) 8121 774 203
Vice President, Communications
georg.steinberger@avnet.eu
or
Avnet,
Inc.
Michelle Gorel, 480-643-7653
Vice President, Public
Relations & Corporate Communications
michelle.gorel@avnet.com
Source: Avnet, Inc.
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