Avnet, Inc. Completes the Acquisition of Bell Microproducts Inc.
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Substantially Increases Industry Leading Global Scale and Scope
Phoenix, Ariz. - July 6, 2010 - Avnet, Inc. (NYSE:AVT) announced today that it
has completed its acquisition of Bell Microproducts Inc. ("Bell Micro") in an
all cash merger for $7.00 per share, which equates to an equity value of
approximately $252 million and a transaction value of approximately $631 million
assuming a net debt position for Bell Micro of $379 million at face value as of
March 31, 2010. The acquisition was approved by Bell Micro shareholders
representing over 98% of the votes cast and has received all required regulatory
approvals. The transaction is expected to be immediately accretive to earnings
excluding integration and transaction costs.
Roy Vallee, Avnet's chairman and chief executive officer, commented, "The
acquisition of Bell Micro marks an inflection point in Avnet's history as the
clear leader in value-added technology distribution. Bell Micro is the largest
acquisition in Avnet's history on a revenue basis and substantially improves our
global scale and scope competitiveness. It strengthens our position in the
Americas and Europe and expands our presence in the fast growing Latin America
market. We welcome the Bell Micro customers and suppliers as well as the
talented employees at Bell who support them. Our value based management culture
and discipline should allow us to achieve our stated return-on-capital goal of
at least 12.5% on this transaction following the completion of the integration
which we expect to occur by the end of our fiscal year 12 months from now."
As a leading value-added distributor of storage and computing technology, Bell
Micro had sales of approximately $3.0 billion in calendar year 2009. With more
than 1,900 employees, the company offers a broad suite of integration and
support services to OEMs, VARs, system builders and end users through 55 offices
in the United States, Canada, Europe and Latin America. The company, which
operates both a distribution and single tier reseller business, offers a
portfolio of storage, computing, software and networking products from
industry-leading suppliers. In calendar year 2009, revenues from North America,
EMEA and Latin America were 42%, 41% and 17% respectively.
Rick Hamada, Avnet's president and chief operating officer stated, "Bell Micro's
relationships with key hardware, software and services suppliers, further
develops Avnet's product portfolio and technical expertise. Additionally, Bell
Micro enhances our value added solutions for the data center and enables us to
consolidate our presence in the embedded market, adding to our critical mass and
momentum as a leader in embedded technology. With strong customer and supplier
relationships, we look forward to enjoying the benefits of the cross-selling
opportunities that the merger with Bell Micro brings to Avnet."
Bell Micro's Latin America and EMEA businesses as well as its North American
data center business will be integrated into Avnet Technology Solutions. Bell
Micro's North American embedded business, including embedded components like
hard disk drives, will be integrated into Avnet Electronics Marketing. Avnet
intends to explore strategic alternatives for the single tier reseller business,
which had sales of approximately $450 million in calendar year 2009.
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," 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 activities and 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. 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 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 and by providing cost-effective,
value-added services and solutions. For the fiscal year ended June 27, 2009,
Avnet generated revenue of $16.23 billion. For more information,
visitwww.avnet.com. (AVT_IR)
Investor Relations Contact:
Avnet, Inc.
Vincent Keenan
480-643-7053
Vice President, Investor Relations
vincent.keenan(at)avnet.com
Public Relations Contact:
Avnet, Inc.
Michelle Gorel
480-643-7653
Vice President, Public Relations
michelle.gorel(at)avnet.com
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