Strengthens Leadership Position in Asia IP&E Market
PHOENIX--(BUSINESS WIRE)--
Avnet, Inc. (NYSE:AVT) announced today that it has acquired J.C. Tally
Trading Co., Ltd (J.C. Tally) and its affiliate Shanghai FR
International Trading, an interconnect, passive and electromechanical
components (IP&E) distributor in Asia with operations in Taiwan and
China. J.C. Tally generated revenue of approximately US$90 million in
calendar 2010. With this acquisition, Avnet Electronics Marketing Asia
expands its position as the number one IP&E distributor in the region.
Harley Feldberg, President, Avnet Electronics Marketing global
commented, "This acquisition supports our stated strategy to expand our
IP&E business globally and further expands our presence in the fast
growing Asia market. The IP&E market in Asia is highly fragmented and
this acquisition provides another opportunity to accelerate our growth
in the region by adding new suppliers and customers."
Founded more than 30 years ago, J.C. Tally has approximately 140
employees serving a broad base of customers from eight locations across
Taiwan and China. With a focus on strong technical support, J.C. Tally's
line card includes complementary suppliers such as NCC, Kemet,
Panasonic, Coiltronics and Bussman. J.C. Tally will be integrated into
the operations of Avnet Electronics Marketing Asia. The transaction is
expected to be immediately accretive to earnings and supports Avnet's
long-term return on capital goal of 12.5%.
Stephen Wong, president of Avnet Electronics Marketing, Asia commented,
"By extending the range of our product offerings, this acquisition
enables us to provide more options to our customers, thereby
strengthening our competitive position in the IP&E business in Greater
China and providing cross selling opportunities to the combined customer
base. The combination of the talented employees from J.C Tally and
Avnet's scale and scope advantages in the region will allow us to
deliver superior value to our trading partners and enhance our position
as the largest IP&E distributor in Asia."
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. 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 by providing cost-effective, value-added services and
solutions. For the fiscal year ended July 3, 2010, Avnet generated
revenue of $19.16 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.
Avnet, Inc.
Public Relations
Michelle Gorel, +1-480-643-7653
Vice
President, Public Relations
michelle.gorel@avnet.com
or
Investor
Relations
Vincent Keenan, +1-480-643-7053
Vice President,
Investor Relations
Vincent.keenan@avnet.com
Source: Avnet, Inc.
News Provided by Acquire Media