Avnet, Inc. Announces Agreement to Acquire RTI Holdings
Further expands wireless, optical, communications, industrial and digital home application product lines and strengthens presence in China and Hong Kong
PHOENIX--(BUSINESS WIRE)-- Avnet, Inc. (NYSE:AVT) announced today that it has agreed to acquire the shares of RTI Holdings Ltd., a value-added distributor of wireless, optical, telecom, data communications, and industrial components in Hong Kong and the People's Republic of China (PRC). In addition, Avnet will also acquire the shares of three related entities, RTI Technology China Limited, Eastele Technology China Limited, and DSP Solutions Limited. This transaction has received all necessary regulatory approvals and is expected to close in the next 30 days.
"This acquisition is important to Avnet Electronics Marketing as the combination of RTI's focused technical expertise and Avnet's scale and scope further strengthen our competitive edge as we continue to grow in Asia," said Harley Feldberg, president Avnet Electronics Marketing. "This transaction also complements our existing offerings of product lines and allows us to expand our value proposition to our customers. With the addition of talented employees from RTI, I am sure we will be able to tap deeper into additional markets yet to be explored."
Founded in 1989 and headquartered in Hong Kong, RTI has a strong presence in China serving over 700 customers across a range of end markets including telecom and datacom, industrial and digital home applications. The company has over 120 sales/FAE/CS employees that provide application engineering services, technical support and sales promotion activities to high-tech manufacturing firms across the region. The company generated revenue of approximately US $80 million in the 2012 calendar year. This acquisition, which will be integrated into Avnet Electronics Marketing, Asia is expected to be immediately accretive to earnings and supports Avnet's return on capital goal of 12.5%.
"China remains a high priority and key strategic focus for Avnet Electronics Marketing. The acquisition of RTI not only expands our market coverage in industrial, telecom, optical and datacom but it also strengthens our demand creation resources," said Stephen Wong, president Avnet Electronics Marketing, Asia. "RTI is a reputable player in the region delivering a breadth of engineering services from basic circuit design to total product solutions. The addition of RTI will further complement our strategic vision of providing best-in-class products and services to our customers in a critical growth region for Avnet."
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. 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.
Avnet, Inc. (NYSE:AVT), a Fortune500 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. (AVT_IR)
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KEYWORDS: United States Asia Pacific North America China Arizona Hong Kong
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