© datwyler premier farnell Business | June 14, 2016

Datwyler to acquire Premier Farnell for EUR 1 billion

Dätwyler Holding AG is making an offer to acquire fellow component distributors Premier Farnell for CHF 1.092 million (EUR 1 billion).
The combination of Premier Farnell and Datwyler creates a new giant in the field of distribution of electronic components. The transaction increases scale and global presence of Datwyler, with a combined revenues of CHF 1.8 billion in the distribution business and combined revenues of CHF 2.5 billion for the new combined group.

Ulrich Graf, the Chairman of Datwyler said, “Premier Farnell and Datwyler both have long and successful histories in high-service distribution for electronic components. By combining forces, we expect to significantly increase our competitiveness and extend our product range, facilitating a one-stop-shopping experience for our wide range of customers from a multitude of industries.”

The transaction values the entire share capital of Premier Farnell at approximately CHF 848 million (GBP 615 million) with an enterprise value of CHF 1.092 million (GBP 792 million).

Datwyler believes the combination with Premier Farnell represents a strong strategic fit. Both companies share very similar strategies and business models and are complementary in terms of product range, distribution channels and geographic footprint. While Premier Farnell holds a strong position in the EDE segment, Datwyler has historically focused more on the MRO segment.

"We believe that the new size enables the combined group to realise significant economies of scale compared to a standalone strategy. Complemented by efficiency gains from overlapping cost bases, increased capillarity and acceleration of ongoing restructuring efforts on both sides, the combined group is also expected to deliver enhanced margins going forward," the company states in a press release.


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