Premier Farnell to acquire Buck & Hickman

Premier Farnell plc, London, a distributor of electronic, electrical and industrial products, today announced that it has agreed to acquire Buck & Hickman, a U.K. industrial product catalog distributor, from Charles Baynes PLC for a cash consideration of US$90 million. B&H had 2000 sales of US$130 millionand an operating profit of US$11.5 million. The net assets of the business at the end of 2000 were US$17 million.

The acquisition is expected to be earnings enhancing, after amortization of goodwill, in the current year. The purchase consideration will be satisfied from existing cash resources and bank facilities.

The acquisition will increase the company's industrial product range, which will be marketed to Farnell customers in Europe, Asia and Australasia. In particular, it will enhance Farnell's position in the U.K. and extend its range of purchasing expertise. B&H's 29 branches in the U.K. will provide a further distribution channel for Farnell, capable of providing a same-day delivery service in the U.K. for selected Farnell products. B&H customers will gain access to a range of complementary products from the Farnell and CPC catalogs.

'This is a rare opportunity to acquire a business and management team of the caliber of B&H and we are delighted to be in a position to take advantage of it,' said Premier Farnell Chief Executive John Hirst. 'It is an excellent fit. The investment program at Premier Farnell is delivering an infrastructure that can quickly integrate new products and customers and will allow us to leverage the high quality branded industrial product range that B&H brings.

'We believe B&H will benefit significantly from being part of a focused electronic and industrial product distribution company for the MRO market and we look forward to developing this business both in the U.K. and abroad.'

B&H is a U.K. business-to-business distributor of industrial tools and supplies, selling products through catalogs, via its own branches and through its external sales force, of approximately 75 people. It has a national distribution center in Coventry, stocks 48,000 products and has a well established 'not in catalog' service to customers. It has approximately 17,000 active customers and employs 700 staff.

Premier Farnell is a global business-to-business, distributor of electronic, electrical and industrial products to the maintenance, engineering, education and design sectors. The group has a multi-channel approach to sales including a field-based sales force, call centers, catalogs, direct mail and web-based services and e-procurement. The group focuses on small-order, high-service distribution with an international distribution capability, with positions in the U.S. and U.K. and a strong presence in Europe, Asia and Australia.

Premier Farnell's primary division is Catalogue Distribution, which consists of Newark, Farnell, MCM and CPC. The company services 1.25 million customers worldwide, stocks 360,000 items representing more than 3,000 major suppliers and employs 4,800 people.