Strengthens Leadership Position in Semiconductor Distribution
While Expanding Presence in Embedded Computing and Display Solutions
PHOENIX--(BUSINESS WIRE)--
Avnet,
Inc. (NYSE:AVT)
announced today that it has acquired a majority interest in MSC
Investoren GmbH ("MSC Group") as the first step of a two part
transaction in which Avnet will ultimately acquire the remainder of the
company. MSC is a recognized value-add distributor focused on electronic
component distribution, embedded computing technology and display
solutions, as well as design and manufacturing. MSC leverages its unique
combination of distribution, production and system integration
capability to address the emerging customer demand for more complex
electronic products. In calendar year 2012, MSC generated revenue in
excess of US$450 million, with embedded computer technology (including
display solutions) accounting for almost 50 percent of its sales.
Patrick Zammit, President of Avnet Electronics Marketing EMEA, said,
"The acquisition of the MSC Group further strengthens our leadership
position in electronic component distribution while adding a new growth
opportunity in embedded computing and display solutions. MSC's strength
in systems level solutions expands our portfolio to address the
increasingly complex needs of our customer base in the European
industrial electronics market. We are excited to welcome the talented
team of MSC Group into our organization. I am confident that the
combined organization will allow us to serve the technology value chain
deeper and wider and accelerate profitable growth in the region."
Founded in 1979, MSC Group has grown from a product distributor to a
consultative partner for 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' increasing requirements 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 cycle from design to finished system. The
operations of MSC Group will become part of the European business region
of Avnet Electronics Marketing.
This acquisition is expected to be immediately accretive to earnings and
achieve Avnet's 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 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
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 29, 2013, Avnet generated revenue of $25.5
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
Public
Relations Contact:
Avnet, Inc.
Michelle Gorel, 480-643-7653
Vice
President, Public Relations & Corporate Communications
michelle.gorel@avnet.com
Source: Avnet, Inc.
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