Electronics Production | December 01, 2008
Avnet acquires distributor Nippon Denso Industry
Avnet has entered into an agreement to acquire Nippon Denso Industry, based in Japan ("NDI") through its subsidiary, Avnet Japan ("Avnet EM Japan").
NDI is a Tokyo-based, value-added distributor of electronic components with established design and engineering expertise. Its engineering service reputation has been established through fifty years of introducing suppliers' technologies into customers' end products. NDI is focused on a limited number of franchised suppliers with the prime objective of assisting customers with the design-in of complex semiconductors and sub-system level solutions. The transaction which is expected to close by December 29, 2008, should be immediately accretive to earnings and supports Avnet's return on capital goals. NDI was founded by its Chairman, Shozo Kawabata in 1958. Yukio Kawabata serves as President and will continue to serve as a member of the executive management team of Avnet EM Japan. Besides a Shibaura, Tokyo-based headquarters and warehouse, NDI also has five sales offices within Japan, two international sales offices based in Singapore and Hong Kong and an international subsidiary in Shanghai, China. It had annual revenue of JPY16.1 billion ($170 million) for its fiscal year ended March 31, 2008. With the addition of NDI, Avnet EM will more than double its business in Japan. Tom McCartney, President of Avnet EM Japan stated, "I am enthusiastic about this acquisition, not just because it creates an opportunity to broaden our customer base, but also because NDI shares our core strategy of offering design-in distribution with exceptional service. The combined organization's strength in engineering will be complemented by Avnet's global supply chain management and logistics capabilities."