Avnet, Inc. Announces Agreement to Acquire Assets of USI Electronics
Acquisition expands Avnet’s footprint in the Defense Aerospace vertical
PHOENIX -- December 13, 2012
Avnet, Inc. (NYSE:AVT) announced today that it has agreed to acquire
substantially all of the operating assets of Universal Semiconductor, Inc.,
“USI Electronics,” a distributor of discrete semiconductor, passive and
electromechanical components to the military and aerospace customers. USI
Electronics services a broad customer base of small, medium, and large OEM
business partners and differentiates itself by having the flexibility to
provide same day shipping, same day tape and reeling, and personalized service
while offering the technological solutions necessary to compete as a
world-class global distributor. This transaction is expected to close within
thirty days and will be integrated into Avnet Electronics Marketing, Americas.
“This acquisition is of strategic importance as it enhances our competitive
position in the higher value defense and aerospace segment,” said Ed Smith,
president Electronics Marketing, Americas. “USI is a respected leader and
established player in the space with a strong emphasis on providing business
partners a best-in-class experience. Their value proposition complements our
strategy as we extend our leading position in serving the electronic component
needs of this vital segment.”
Founded in 1982, with headquarters in Fort Lauderdale, Florida, USI
Electronics operates on the premise that military component purchasing is made
easier by offering superior specialized service. USI's philosophy is to solve
the complex component needs of the military customer via a service team
offering exceptional product knowledge and service backed by inventory depth
and breadth. USI Electronics has 58 employees across five offices in US and
one in Denmark. The company generated revenue of approximately US $70 million
in the 2011 calendar year.
This acquisition is expected to be immediately accretive to earnings and
supports Avnet's return on capital goal of 12.5%.
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 Fortune 500 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)
Visit Avnet's Investor Relations Website at www.ir.avnet.com or contact us at
Investor Relations Contact:
Vincent Keenan, 480-643-7053
Vice President, Investor Relations
Public Relations Contact:
Michelle Gorel, 480-643-7653
Vice President, Public Relations
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