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Avnet, Inc. (NYSE:
AVT) announced today that it has agreed to acquire substantially all of the operating assets of
Universal Semiconductor, Inc., “USI Electronics,” a distributor of discrete semiconductor, passive and electromechanical components to the military and aerospace customers. USI Electronics services a broad customer base of small, medium, and large OEM business partners and differentiates itself by having the flexibility to provide same day shipping, same day tape and reeling, and personalized service while offering the technological solutions necessary to compete as a world-class global distributor. This transaction is expected to close within thirty days and will be integrated into Avnet Electronics Marketing, Americas.
“This acquisition is of strategic importance as it enhances our competitive position in the higher value defense and aerospace segment,” said Ed Smith, president Electronics Marketing, Americas. “USI is a respected leader and established player in the space with a strong emphasis on providing business partners a best-in-class experience. Their value proposition complements our strategy as we extend our leading position in serving the electronic component needs of this vital segment.”
Founded in 1982, with headquarters in Fort Lauderdale, Florida, USI Electronics operates on the premise that military component purchasing is made easier by offering superior specialized service. USI's philosophy is to solve the complex component needs of the military customer via a service team offering exceptional product knowledge and service backed by inventory depth and breadth. USI Electronics has 58 employees across five offices in US and one in Denmark. The company generated revenue of approximately US $70 million in the 2011 calendar year.
This acquisition is expected to be immediately accretive to earnings and supports Avnet's return on capital goal of 12.5%.
This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations and are subject to uncertainty and changes in facts and circumstances. The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as "will," "anticipate," "expect," believe," "intend," and "should," and other words and terms of similar meaning in connection with any discussions of future operating or financial performance or business prospects. Actual results may vary materially from the expectations contained in the forward-looking statements.