Avnet completes acquisition of Premier Farnell
This completes a process commenced in June this year; on 15th June 2016 we reported Distributor Premier Farnell to be sold to Swiss company Datwyler; at that initial stage Premier Farnell (also operating as element14), had agreed a sale of the company to Datwyler Holding AG (Altdorf, Switzerland) for a cash offer of 165 pence (UK£1.65) per share.
That offer represented a premium to the prior share price of Premier Farnell of 51%. At the start of August, Avnet launched its counterbid, as we reported on 2nd August 2016; Avnet counterbids for Premier Farnell and it is this bid that has ultimately prevailed.
Avnet says that 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 [that is, economies and reductions in expenses relative to running the two businesses separately].
“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.”
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.
Avnet is a global company ranked on the FORTUNE 500 with revenues of $26.2 billion for the fiscal year 2016; www.avnet.com