Swiss firm shrugs in defeat as Avnet preps to swallow Premier Farnell
Raspberry Pi flogger to be flogged to apple-pie loving nationals
Swiss components distributor Dätwyler will not be filing a counter-bid to acquire British distributor Premier Farnell, after its last offer was trumped by Avnet.
In a conference call with investors earlier this month, Dätwyler said it was "currently considering its options" about how it would respond to being out-bid for Raspberry Pi distributor Premier Farnell.
However in a statement sent to investors, Datwyler has now confirmed that its previous offer was final and as of this morning is considered lapsed, setting the stage for Premier Farnell to be acquired by American distie Avnet.
Datwyler's offer of £792m, including debt, was made back in June. The Americans arrived in July with more money, £868m, presenting the Premier Farnell board with a 12.1 per cent premium over Datwyler's offer.
The Swiss business's drop-out will hit the company with some one-time costs, but these are unlikely to be too painful. Unlike Avnet, Datwyler is growing, with net profit up 34.4 per cent year-on-year. Meanwhile sales and profits are down at the Arizona-based Avnet, prompting interim CEO Bill Amelio to tell investors and financial analysts that he's overhauling the business.
In that same call, Amelio said that "combining Premier Farnell's innovative online services with [Avnet's Electronics Marketing division's] world-class design and supply chain services, we will create a customer service experience unparallel [sic] in this industry, while engaging with engineers earlier in the design cycle." ®