Increases presence in fast-growing Asia Pacific market Accretive to earnings in first year
Arrow Electronics today announced that it has agreed to acquire Nu Horizons Electronics (“Nu Horizons”) in an all cash transaction for $7.00 per share. Nu Horizons is a leading global distributor of advanced technology semiconductor, display, illumination, and power solutions to a wide variety of commercial original equipment manufacturers (OEMs) and electronic manufacturing services providers (EMS).
Nu Horizons has sales facilities in more than 50 locations across North America, Asia, and Europe and regional logistics centers throughout the globe, serving a wide variety of end markets including industrial, military, networking, telecommunications, and data communications. Nu Horizons partners with best-in-class suppliers to provide in-depth product development, custom logistics, and life-cycle support to its customers. Active components distributed by the company, principally to OEMs, include mainly commercial semiconductor products, such as memory chips, microprocessors, digital and linear circuits, microwave, radio frequency (RF) and fiber-optic components, transistors and diodes.
“This acquisition builds on our strategy to expand our global capabilities, especially in the fast-growing Asia-Pacific region,” said Michael J. Long, chairman, president, and chief executive officer of Arrow Electronics, Inc. “Nu Horizons’ strong customer and supplier relationships and talented employees will allow us to continue to enhance shareholder value.”
Nu Horizons is headquartered in Melville, N.Y., and has over 700 employees. Total sales were $671 million for the fiscal year ended February 28, 2010. The transaction is expected to be $.05-$.10 per share accretive to earnings in the first full year of operations. The acquisition has been approved by the Boards of Directors of both companies and is subject to the approval of Nu Horizons’ shareholders as well as customary regulatory approvals. The transaction is expected to close during the fourth quarter of 2010