Avnet Completes Sale of Its Allied Catalog Operation.PHOENIX--(BUSINESS WIRE)--July 12, 1999-- Avnet Inc's (NYSE NYSE See: New York Stock Exchange :AVT AVT avian arginine vasotocin. See vasotocin. ) Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Roy Vallee, Monday announced the completion of the sale of its Allied Electronics catalog business to Electrocomponents plc, a United Kingdom-based electronic component catalog distributor, for US $380 million in cash. Avnet announced its intent to divest Allied on June 7, 1999 and the transaction was subject to the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act The Hart-Scott-Rodino Antitrust Improvements Act of 1976 (Public Law 94-435, known commonly as the HSR Act) is a set of amendments to the antitrust laws of the United States, principally the Clayton Antitrust Act. The HSR Act was signed into law by President Gerald R. of 1976. Fort Worth, Texas-based Allied Electronics is a leading broad line catalog distributor of active and passive electronic components, test equipment and electronic equipment, which it sells in small order quantities by means of its catalog, via its web site and through telesales operations. Its principal customers are maintenance and repair organizations, research and development and engineering departments of original equipment manufacturers (OEMs). Allied reported sales of approximately US $150 million for the fiscal year ended July 2, 1999. According to Vallee, Avnet's strategy is to provide value to electronics OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and production customers through its global core business of electronics distribution, supply-chain management and engineering design services. Allied's focus is on broadline catalog sales in low volume transactions principally to other customer segments. Avnet and Electrocomponents have publicly announced their intention to form a global strategic alliance to leverage the core competencies of both companies. Avnet will supply products to Electrocomponents via Avnet Integrated Material Services, the leader in electronic supply chain management, which will provide planning, purchasing and delivery. Electrocomponents will supply Avnet with information on customer product usage that will be used to grow Avnet's emerging account base and its Avnet Design Services business. Electrocomponents plc, listed on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. , reports a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of approximately 2 billion British Pounds. The company is the leading high service level, small order distributor of electronic, electrical and mechanical products, with operations throughout Europe, Asia and Japan. Phoenix, Arizona-based Avnet Inc., a Fortune 500 company with annual sales exceeding $6.3 billion, is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). components and computer products from the industry's leading manufacturers. Serving customers in 59 countries, Avnet markets, inventories and adds value to these products and provides world-class supply-chain integration services. The company's web site is located at www.avnet.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion