Bell Microproducts Finalizes Acquisition of Future Tech International.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 22, 1999-- Bell Microproducts Inc. (Nasdaq:BELM), a leading international value-added distributor of mass storage products and electronic components, today announced that it has completed its acquisition of certain assets of Future Tech International, Inc. through its newly formed subsidiary, Bell Microproducts - Future Tech, Inc. Future Tech, based in Miami, has been a leading value-added distributor of computer components to the fast-growing markets of Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the Caribbean. The company distributes products from AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. , Canon, Maxtor, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. and Quantum and other leading manufacturers. It also manufactures and markets its proprietary Markvision-branded products. "Bell Microproducts' acquisition of Future Tech is part of our overall strategy to increase our presence in value-added distribution in the Americas," said Don Bell, president 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. . "Future Tech was an excellent choice for us, in that it carries a line of quality, high technology products that complements our lines and backs them up with comprehensive service and support. The synergies will strengthen both companies." Future Tech's reported 1998 sales were approximately $180 million. Its customer base includes approximately 350 active customers in Miami and Latin America. Lou Leonardo, president of Future Tech, has been appointed to the position of president of the new subsidiary and will report to Don Bell. The subsidiary is expected to employ approximately 100 people. The Bell subsidiary paid $1,500,000 in cash to acquire Future Tech's assets and is obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to pay an additional $1,000,000, subject to certain contingent offsets and reductions within 45 days. The Bell subsidiary has also assumed certain liabilities of Future Tech. Bell Microproducts Inc. has guaranteed the Bell subsidiary's performance with respect to these payments and assumption of liabilities. The acquisition was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. pursuant to a confirmation order issued by the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Southern District of Florida on July 9, 1999, approving Future Tech's plan of reorganization. One of Future Tech's creditors has filed a notice of appeal with respect to the confirmation order. About Bell Microproducts Inc. Bell Microproducts Inc. is a leading international distributor of high technology products serving the industrial and commercial markets. The Company markets and distributes the products of more than 100 manufacturers of semiconductors, disk drives, tape drives, optical drives, computers, enhancement products and peripherals primarily to original equipment manufacturers (OEMs), value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VARs) and system integrators throughout the Americas. In addition, the Company distributes proprietary BellStor storage products and Trademark(R) brand personal computers. The Company adds value to its offerings through a broad range of services including testing, kitting, mass storage subsystem The part of a computer system that provides the storage. It includes the controller and disk drives. See storage system. assembly and the integration of complete computer systems. In November 1998, the Company expanded its U.S. market position with the acquisition of the Computer Products Division of Almo Corporation of Philadelphia. During the same month, the Company expanded into the international market with its acquisition of Toronto-based Tenex Data Systems, now Bell Microproducts Canada. In June 1999, the Company announced that it had sold its Quadrus contract manufacturing division in order to focus all its resources on its distribution business. More information on the Company is available from the company's SEC filings or by contacting the company directly. Bell Microproducts' news and product/service information are available at World Wide Web site http://www.bellmicro.com. |
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