Avnet, Inc. (AVT) recently launched a tender offer for buying all issued shares of Unidux, Inc. in a move to expand operations in Japan.
The tender offer is expected to be completed by the end of July 2010. For the tender offer to be successful, 66.7% of the shares need to be tendered. Avnet reported that shareholders representing about 37.6% of the issued shares have committed to accept the offer.
Unidux is an electronics components distributor primarily serving Japanese original equipment manufacturers. Unidux has operations in Japan, Hong Kong, the People’s Republic of China and ASEAN countries. It distributes active and passive components from leading suppliers including Intel (INTC), Micron (MU), OKI, Aptina and Littelfuse (LFUS).
Management expects that the Unidux business will add complementary customers and suppliers while tripling Avnet Electronics Marketing business in Japan. It will also provide an opportunity to forge ties with many significant new customers such as Fujitsu, Panasonic (PC), Sharp and Toshiba.
Earlier, Avnet entered into a definitive agreement to acquire Bell Microproducts Inc. (BELM) for $7.00 per share, amounting to $252 million. Bell is a leading value-added distributor of storage and computing technology. The company has over 1900 employees and offers a broad suite of integration and support services to OEMs, VARs, system builders and end users through 55 offices in the United States, Canada, Europe and Latin America.
Avnet management had pursued a strategic acquisition policy to grow its geographic as well as market coverage for electronic components and computer products. The company has been able to increase its scale of operations as a result of its acquisitions.
The company continues to expand business in Asia, and Asia is likely to be the largest growth driver given the current outsourcing trends.
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