Nu Horizons Electronics Corp. (NASDAQ:NUHC), a leading global distributor of advanced technology semiconductor, display, illumination, power, system and telecommunication solutions; today announced that Martin Kent, a 35-year veteran of the semiconductor distribution industry, has been appointed as the Company’s President and Chief Executive Officer effective May 3, 2010. Arthur Nadata, a founder of the Company and currently the Company’s Executive Chairman and Interim Chief Executive Officer, will serve as the Company’s Non-Executive Chairman. Richard Schuster, also a founder of the Company, will remain as Executive Vice President and Chief Operating Officer of the Company and President of Nu Horizons’ passive components segment, NIC Components.
Arthur Nadata stated, “We are delighted to bring someone of Martin’s experience and ability on as CEO to lead Nu Horizons. We believe that his prior industry experience as CEO of Abacus Group, Plc, will be invaluable in running Nu Horizons. We were impressed with Martin’s success in growing Abacus Group, Plc until its acquisition in January 2009, both organically and through acquisitions in Europe, to a company with approximately $500 million in sales for their fiscal year ended September 30, 2008. His familiarity with our products and geographic markets should result in a smooth transition for our customers, suppliers and employees.”
“Since founding the Company in 1982, it has truly been an honor and pleasure serving Nu Horizons these past 28 years and helping to build Nu Horizons into a global distribution leader with approximately $670 million in sales for fiscal 2010,” said Mr. Nadata. “With great people, a strong balance sheet, and a strong platform in place, combined with Martin’s wealth of experience to draw on in leading the Company, Nu Horizons has a bright future and I am looking forward to helping insure a smooth seamless transition.”
“I am excited to have the opportunity to take on the position of CEO of Nu Horizons,” stated Mr. Martin Kent. “Arthur has, in conjunction with his management team, taken Nu Horizons to a strong position in the electronics distribution market. I believe we can continue to build on these strong foundations and carry on developing a business that offers an excellent service to its customers, strong support for its suppliers and a level of profitability that allows investment for the future and generates a positive return on investment for its shareholders,” concluded Mr. Kent.
In a related action, the Company’s Board of Directors will vote to expand the size of the Board to nine members and appoint Mr. Kent to the Board to fill the vacancy as of the effective date of the agreement.
In connection with Mr. Kent’s employment as president and chief executive officer, he will be granted 360,000 inducement stock options. The stock options will have an exercise price equal to the closing stock price on the first trading day following the execution of his agreement; a term of 10 years from the date of grant; and become exercisable in four equal annual installments commencing on the first anniversary of the date of grant although they will not be exercisable unless the closing stock price of the common stock is no less than $5.00 per share for at least 10 consecutive trading days prior to the date of exercise.
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