Avnet Completes the Acquisition of Premier Farnell plc
October 17 2016 - 8:19AM
Business Wire
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)
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Media Relations ContactAvnet, Inc.Maureen O’Leary,
480-643-7499maureen.oleary@avnet.comorInvestor Relations
ContactVincent Keenan,
480-643-7053vincent.keenan@avnet.comorFor UK and Europe Media
Relationsonechocolate communicationsStacey Thorpe, +44 (0) 7968
966 408staceyt@onechocolatecomms.co.uk
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