Date Posted: 7/16/2008
Arrow Electronics Completes Acquisition of the Components Distribution Business of Achieva Ltd.
MELVILLE, N.Y.--(BUSINESS WIRE)--Arrow Electronics, Inc. (NYSE:ARW - News) announced that it has completed its previously announced acquisition of the components distribution business (“Achieva”) from parent company Achieva Ltd., a value-added electronic components distributor in Asia Pacific. Arrow anticipates the transaction will be immediately accretive to earnings in the first twelve months by $.01 to $.03 per share and will meet the company’s acquisition objectives for return on invested capital.
“With this acquisition, we have gained a highly experienced management team and strengthened our position in the ASEAN (Association of Southeast Asian Nations) and greater China regions. The company’s technical focus will enhance our existing demand creation abilities and position Arrow for continued profitable, above-market growth in the Asia Pacific region,” said William E. Mitchell, chairman and chief executive officer of Arrow Electronics, Inc.
Achieva is focused on creating value for its partners through technical support and demand creation activities. The company’s product range covers semiconductor components such as application specific integrated circuits, programmable logic devices, digital signal processing chips and microchip-controller units. With over 200 employees, the company has a presence in eight countries (Singapore, Taiwan, China, India, Malaysia, Philippines, Thailand, and Korea) and primarily serves small and medium sized customers in the data communications, telecommunications, lighting, industrial and digital consumer end markets. Total 2007 sales were approximately $210 million.
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. Headquartered in Melville, New York, Arrow serves as a supply channel partner for approximately 700 suppliers and 140,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 300 locations in 50 countries and territories.
Safe Harbor
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.
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