Avnet, Inc. (NYSE:AVT) announced today that it has acquired the
operating assets of the electronic components distribution business of
C.R.G. Electronics Ltd. (CRG), an Israeli company. CRG is a distributor
of high quality PC products and electronic components serving the
Israeli electronics industry. The transaction has already received
Founded in 1989 by Mr. Ronny Cohen, CRG provides pre- and post-technical
support engineers, marketing, sales and inventory logistics to over 300
customers in the networking/datacom, telecom, defense and industrial
segments. For the calendar year 2011, the electronic components business
of CRG generated revenue of approximately $23 million. The acquired
business will become part of Avnet Israel, a business region of Avnet
Electronics Marketing EMEA.
“The acquisition of CRG will strengthen our position in the design
intensive Israeli high-tech market by adding complementary product lines
and a highly reputable technical team,” said Patrick Zammit, president
of Avnet Electronics Marketing EMEA. “CRG’s technical resources and
customer service commitment will help us to further enhance our strategy
of providing technical support to our Israeli customers at the point of
design and support them with global fulfillment capability from
manufacturing ramp through end of life.”
The investment 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, 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 in more than 70 countries
worldwide. Avnet accelerates its partners’ success by connecting the
world’s leading technology suppliers with a broad base of more than
100,000 customers by providing cost-effective, value-added services and
solutions. For the fiscal year ended July 2, 2011, Avnet generated
revenue of $26.5 billion. For more information, visit www.avnet.com.
Visit Avnet's Investor Relations Website at www.ir.avnet.com
or contact us at email@example.com.