December 1, 2008 -- Avnet, Inc. announced that it has entered into an agreement to acquire Nippon Denso Industry Co., Ltd. of Japan (NDI) through its subsidiary, Avnet Japan Co., Ltd. (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 50 years of introducing suppliers' leading technologies into customers' end products, maintains Avnet. 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.
Harley Feldberg, global president of Avnet Electronics Marketing, an operating group of Avnet, Inc., comments, "This acquisition expands our presence and enhances our competitive position in one of the world's largest markets for electronic components. NDI brings Avnet exciting new talent with significant design and engineering expertise which, when combined with our existing team, accelerates our growth in this strategic country by increasing the value we deliver to customers and suppliers alike."
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 says it will more than double its business in Japan.
Tom McCartney, President of Avnet EM Japan, remarks, "I am very 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 acquisition will add new semiconductor suppliers to Avnet EM Japan's breadth of product offerings in microcontroller units (MCUs), digital signal processors (DSPs), production programmed read only memory (P2ROM), as well as a variety of large-scale integrated chips (LSIs) for display, communications, speech, audio, video and USB applications. The combined organization's strength in engineering will be complemented by Avnet's global supply chain management and logistics capabilities."
On the Web:
www.avnet.co.jp
www.avnet.com
