Avnet rings up Bell Micro sale
Another breadliner gets borged
Avnet is paying $252m for Bell Microproducts - the 20-year veteran distie which specialises in storage kit.
Including Bell's debt pile of $342m this gives a value for the deal of $594m. The all-cash payment values each Bell share at $7, a third more than they were changing hands for on Friday.
Both boards of directors have approved the deal, which now needs to be passed by shareholders.
Bell was founded in 1988 and last year turned over about $3bn. It employs 1,900 people in 55 offices across the world.
It expects turnover of between $795m and $815m for the first quarter of 2010, an increase of between 11 and 14 per cent.
The infamously low-margin distie market has struggled with the credit crunch - cheap credit for disties and their favoured clients has traditionally kept the business moving.
Avnet hopes the deal will close in the next 90 to 120 days and immediately add to its profits. Of course the deal still needs regulatory approval. It upped guidance for its third quarter ending 3 April 2010 from between $2.55bn and $2.85bn to between $2.75bn and $2.85bn.
Full statement here. ®