Arrow Electronics Reaches Settlement with E.ON SE
ENGLEWOOD, Colo. -- December 20, 2012
Arrow Electronics, Inc. (NYSE:ARW) announced today that it has entered into a
Settlement Agreement with E.ON SE (EOAN:GR) and VEBA Electronics LLC relating
to certain disputes originating from Arrow’s acquisition of Wyle Electronics
from the VEBA Group in August of 2000. Under the Settlement Agreement, E.ON
will pay Arrow an aggregate amount of $110 million.
The Settlement Agreement provides for, among other things:
*The final and irrevocable settlement among Arrow, E.ON and VEBA of all
present or future claims relating to or arising out of the Wyle
acquisition, including settlement of related income tax disputes; and
*The dismissal of all litigation between Arrow, E.ON and VEBA including all
claims and counterclaims before the District Court of Frankfurt am Main in
Germany, and the termination of a related ongoing mediation proceeding
that commenced in December 2009.
Under the Settlement Agreement, Arrow retains the right to past insurance
recoveries and any future amounts recovered from pending claims or claims yet
to be asserted under any relevant identified or unidentified insurance
Arrow believes that the settlement amount together with any insurance
recoveries will be sufficient to cover any potential future costs relating to
environmental clean-up activities and any other asserted or unasserted claims
related to environmental matters arising out of the Wyle Acquisition, however
it is possible unexpected costs beyond those anticipated could occur.
Arrow Electronics (www.arrow.com) is a global provider of products, services
and solutions to industrial and commercial users of electronic components and
enterprise computing solutions. Arrow serves as a supply channel partner for
more than 120,000 original equipment manufacturers, contract manufacturers and
commercial customers through a global network of more than 390 locations in 53
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. This press release includes forward-looking
statements, including statements addressing future financial results. These
statements are subject to a number of risks and uncertainties that could cause
actual results or facts to differ materially from such statements for a
variety of reasons including, but not limited to: industry conditions, the
company’s implementation of its new global financial system and the company’s
planned implementation of its new enterprise resource planning system, changes
in product supply, pricing and customer demand, competition, other vagaries in
the global components and global ECS markets, changes in relationships with
key suppliers, increased profit margin pressure, the effects of additional
actions taken to become more efficient or lower costs, the company’s ability
to generate additional cash flow and the other risks described from time to
time in the company’s reports to the Securities and Exchange Commission
(including the company’s Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q). Forward-looking statements are those statements, which are not
statements of historical fact. These forward-looking statements can be
identified by forward-looking words such as "expects," "anticipates,"
"intends," "plans," "may," "will," "believes," "seeks," "estimates," and
similar expressions. Shareholders and other readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date on which they are made. The company undertakes no obligation to update
publicly or revise any of the forward-looking statements.
Arrow Electronics, Inc.
Greer Aviv, 303-824-3765
Senior Manager, Investor Relations
Paul J. Reilly, 631-847-1872
Executive Vice President, Finance and Operations, and Chief Financial Officer
John Hourigan, 303-824-4586
Director, Corporate Communications
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