Acquisition of Electronic Components Distributor Expands Avnet's
Presence in Japan While Strengthening Technological Expertise
Avnet, Inc. (NYSE: AVT) announced today that, through its wholly-owned
subsidiary, Memec Group Limited, it has closed the tender offer bid for
Internix, Inc. (TSE: 2657). Approximately 92% percent of the outstanding
shares of Internix's common stock on a fully diluted basis were validly
tendered and accepted, well above the 67 percent threshold set out in
the offer document as a condition for Avnet to accept the tendered
shares. Shareholders of Internix who validly tendered their shares will
receive ¥655 per share, which equates to an aggregate equity value of
¥6.4 billion (approximately $80 million). Avnet expects to complete the
acquisition of the remaining outstanding shares and the delisting of
Internix from the Tokyo Stock Exchange before the end of calendar year
Established in 1970 by founder the late Yoshiharu Fujisawa, Internix is
an electronics components distributor representing both Japanese and
foreign suppliers serving primarily Japanese original equipment
manufacturers. This acquisition is expected to be immediately accretive
to earnings and achieve Avnet's return on capital goal of 12.5% within
"This acquisition brings us significant new suppliers and customers
including virtually all the major Japanese electronic OEMs, thereby
positioning us to accelerate profitable growth. The high percentage of
shareholders who supported our TOB offer shows their confidence in
Avnet's strategy to expand through acquisitions in Japan's relatively
unconsolidated market for electronic components," said Tom McCartney,
president and representative director, Avnet EM Holdings (Japan) K.K.
"The addition of Internix to the Avnet EM Group of companies in Japan
enhances the breadth of our design chain services offerings in this
strategic market. The combination of the businesses will increase our
scale and scope in the region which, when combined with Electronics
Marketing's global logistics capabilities, will provide complete supply
chain support to Japanese OEMs wherever their products are manufactured."
With operations in Japan, Singapore, Hong Kong, the People's Republic of
China and Thailand, Internix distributes active and passive components
from leading suppliers including AKM, Cirrus Logic, Honeywell, Maxim,
Microchip, Microsemi, RICOH and SMSC. With approximately 280 employees,
most with engineering backgrounds, Internix provides sales, design,
support and services to a wide range of OEM customers in Japan and their
operations throughout the region. For the twelve months ended March
2012, Internix generated revenue of approximately US$260 million.
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, 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 the Avnet Group in Japan
The Avnet Group in Japan is comprised of two separate selling business
EM Japan Co. Ltd. (AEMJ) and Unidux,
Inc., which are supported by a common back-office support services
company, Avnet EM Holdings (Japan) K. K., a division of Avnet's global
Electronics Marketing group. Both AEMJ and Unidux serve electronic
original equipment manufacturers (EOEMs) and electronic manufacturing
services (EMS) providers, and are focused on distributing electronic
components from their manufacturers' core technologies for their
customers' primary applications and providing associated design-chain
and supply-chain services.
About Avnet Electronics Marketing
Avnet Electronics Marketing is an operating group of Phoenix-based
Avnet, Inc. that serves electronic original equipment manufacturers
(EOEMs) and electronic manufacturing services (EMS) providers in more
than 70 countries, distributing electronic components from leading
manufacturers and providing associated design-chain and supply-chain
services. The group's website is located at www.em.avnet.com.
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.
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at firstname.lastname@example.org.
Avnet EM Holdings (Japan) K. K.
Bob Hackett, +81(0)3 5792 7698
& Communications Director
Michelle Gorel, +1-480-643-7653
Vincent Keenan, +1-480-643-7053
Source: Avnet, Inc.
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