January 2008
Avnet, Inc. today announced that it has acquired YEL Electronics Hong Kong Ltd. (YEL). YEL, which was established in 1992, is a leading distributor of interconnect, passive, electromechanical and limited semiconductor components in the Asia region, representing over 30 franchised suppliers.
YEL generated approximately US$200 million of revenue in the twelve months ended December 2007 with over 80 percent coming from IP&E products. With the acquisition, Avnet gains a well established team of talented and knowledgeable employees serving over 2000 customers in 8 countries across Asia Pacific. The acquisition also expands Avnet Electronics Marketing's franchised line card with new IP&E suppliers in the region.
Harley Feldberg, president of Avnet Electronics Marketing global, noted that the acquisition is another significant step in ELectronics Marketing's strategy to accelerate growth: 'The IP&E distribution industry in Asia is highly fragmented and Avnet intends to actively participate in its consolidation. The acquisition of YEL provides an excellent opportunity to supplement our organic growth initiatives by adding a well respected regional distributor with a management team that shares our focus on profitable growth and superior customer service. With this acquisition, we have increased our IP&E business in Asia by over 50% and become the largest IP&E distributor in the region.'
Avnet YEL will operate as a specialist division to maintain its focus on IP&E profitable growth. The combined customer base will also provide additional opportunities for cross selling as our sales organizations will have an expanded line card supported by Avnet's world-class supply chain management and logistics capabilities. The transaction is expected to be immediately accretive to earnings, excluding minimal integration charges, and supports Avnet's long-term return on capital goals.
Stephen Wong, President of Avnet Electronics Marketing Asia added, 'The acquisition of YEL is a clear demonstration of Avnet's commitment to invest in the high growth Asia components market. With a larger team of talented people, a broadened account base and an expanded line card, Electronics Marketing Asia will have additional opportunities to accelerate organic growth while leveraging our scale and scope advantages to deliver superior value to our trading partners.'
In addition to distributing an industry-leading line card comprised of the world's leading suppliers of semiconductor and IP&E products, Electronics Marketing Asia also offers a wide portfolio of value added services -- from design, demand creation and technical support to leading supply chain and logistic services. This acquisition further validates Avnet's desire and ability to continue investing in this high growth region.
This news message is supported by The Bazaar, a marketplace to buy and sell creative objects. Earn more revenue by selling your prints, downloadable images, or custom products. Set up your store today and stand a chance to have your products featured on DesignTAXI, towards millions of lovers of creative content!
