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Phoenix, AZ -- Roy Vallee, chairman and chief executive officer of Avnet Inc. (NYSE:AVT) Wednesday announced that Avnet's acquisition of Marshall Industries and its subsidiary, Sterling Electronics, was completed following approval by Avnet and Marshall shareholders and termination of the waiting period for anti-trust review.
The stock and cash deal, first announced on June 28, 1999, is valued at approximately $762 million, including assumption of $127 million in net debt.
Marshall shareholders will receive some combination of cash or stock for their shares of Marshall Common Stock: $39 per share for those shares converted to cash and 0.82063 shares of Avnet Common Stock for those shares of Marshall Common Stock converted to Avnet Common Stock.
After final calculations have been made, a press release will be issued on Oct. 21, 1999 further describing the amount of Avnet Common Stock and cash to be received by each Marshall shareholder.
Vallee said, "I am very pleased that the shareholders of both companies have approved this extraordinary transaction and now we can begin formally integrating the outstanding Marshall organization. This constitutes the largest acquisition in the history of electronics distribution.
"Marshall brings to Avnet new supplier relationships, experienced and talented employees and unrivaled information technology and e-business strength in our industry."
Marshall Industries and Sterling, which posted fiscal 1999 sales of $1.7 billion, will be incorporated into Avnet's largest operating group, Avnet Electronics Marketing (EM).
Following the merger, Avnet EM plans to name its core distribution services brand, which services the traditional electronic components distribution market in the Americas, "Avnet Marshall," under co-president Steve Church's direction.
Avnet Marshall will work in tandem with EM's two other brands: Avnet Design Services, which provides engineering services and Avnet Integrated Material Services, which provides supply-chain management and logistics services.
"The merger increases Avnet EM Americas sales to $5.2 billion, making it, in turn, the largest electronic components distributor in the Americas," according to Church.
He added, "Clearly the consolidation of the Avnet Electronics Marketing, Marshall and Sterling resources and value-added services creates the most comprehensive line card and inventory combination in our industry, which will bring more convenience and value to our customers than ever before."
Phoenix-based Avnet Inc., a Fortune 500 company with annual sales exceeding $6.35 billion, is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical components and computer products from leading manufacturers.
Serving customers in 59 countries, Avnet markets, inventories and adds value to these products and provides world-class supply-chain integration, engineering design and technical services. The company's Web site is located at www.avnet.com.
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