Significantly Expands Customer Base and Digital Footprint Worldwide
Avnet,
Inc. (NYSE: AVT)
announced today that it has completed its acquisition of Premier Farnell
plc (“Premier Farnell”) in an all cash merger for £1.85 per share, which
equates to an equity value of approximately £691 million. The
acquisition was approved by Premier Farnell shareholders representing
99.9% of the votes cast and has received all regulatory approvals. The
transaction is expected to be immediately accretive to earnings and,
once the integration is complete, expects to generate annual synergies
of approximately $70 million to $80 million.
“The combination of Premier Farnell with Avnet’s components business
will create a truly unique distribution model that supports customers at
every stage of the product lifecycle. By pairing our deep expertise in
large volume broadline distribution with Premier Farnell’s
specialization in proof of concept and design, we can offer true
end-to-end solutions that accelerate a customer’s time-to-market and
moves their products seamlessly from prototype through to volume
production,” said William Amelio, Chief Executive Officer of Avnet. “As
technology reaches deeper into more products and innovation proliferates
through the internet of things, the ability to reach a wider base of
engineers earlier in the design process will be critical to our future
growth and success.”
Headquartered in Leeds, United Kingdom, Premier Farnell is a global
distributor of electronic components that utilizes a digital platform to
provide innovators and engineers with the latest products, services and
development software. The company supports a registered community of
more than 430,000 members in 36 countries with multi-channel sales and
marketing resources that combine traditional field sales and contact
resources with innovative ecommerce interfaces.
Forward-Looking Statements
This document 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,” “intend,” “estimate,” “forecast,” “expect,”
“feel,” “believe,” “should,” and other words and terms of similar
meaning in connection with any discussions of future operating or
financial performance, business prospects or market conditions. Actual
results may differ 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 integration of Premier Farnell plc, the sale of the
Technology Solutions operating group, 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, an industry down-cycle in
semiconductors, IT hardware or software products, declines in sales,
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, and 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, Inc.
From components to cloud and design to disposal, Avnet, Inc. (NYSE:AVT)
accelerates the success of customers who build, sell and use technology
globally by providing them with a comprehensive portfolio of innovative
products, services and solutions. Avnet is a Fortune 500 company with
revenues of $26.2 billion for the fiscal year 2016. For more
information, visit www.avnet.com.
(AVT_IR)
Media Relations Contact
Avnet, Inc.
Maureen O’Leary, 480-643-7499
maureen.oleary@avnet.com
or
Investor Relations Contact
Vincent Keenan, 480-643-7053
vincent.keenan@avnet.com
or
For UK and Europe Media Relations
onechocolate communications
Stacey Thorpe, +44 (0) 7968 966 408
staceyt@onechocolatecomms.co.uk