Avnet, Inc. (NYSE: AVT), Phoenix, AZ, has agreed to acquire Bell Microproducts Inc. in an all cash merger for $7.00 per share. Bell is a distributor of storage and computing technology with 2009 sales of $3 billion.
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\”We are very excited about the opportunity to build additional scale and scope in storage and computing solutions as well as increase our presence in the fast-growing Latin America market,\” says Roy Vallee, Avnet CEO. \”The combination of Bell’s strong customer/supplier relationships and talented employees, coupled with our value based management culture and discipline, should allow us to achieve our stated return on capital goals on this transaction following the completion of the integration.\”
In addition to the distribution business, Bell operates a single tier reseller business, which represented approximately 15% of total sales while revenues from North America, EMEA and Latin America were 42%, 41% and 17% respectively. Avnet will \”explore strategic alternatives for the single tier reseller business,\” according to Vallee.
Avnet is a distributor of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide.
