Avnet To Extend Presence In China, Hong Kong Through RTI Holdings Acquisition2:45 PM EST Thu. Mar. 21, 2013
Avnet has announced its intention to acquire RTI Holdings Ltd., a value-added distributor specializing in wireless, optical, telecom, data communications and industrial components sold in Hong Kong and the People's Republic of China.
RTI, which was founded in 1989, is currently headquartered in Hong Kong and claims more than 700 customers in a number of key verticals. The company reported revenues of approximately U.S. $80 million last year, and will be integrated into Avnet Electronics Marketing, Asia.
The move is being described as an opportunity to combine RTI's product lines and technical bench with the logistical presence and efficiencies developed by the Avnet team in Asia. Avnet also plans to leverage the synergies toward the development of new markets.
[Related: Avnet Posts Flat Q2 Sales, EPS Up]
"China remains a high priority and key strategic focus for Avnet Electronics Marketing," said Stephen Wong, president of Avnet Electronics Marketing, Asia, in a prepared statement. "The acquisition of RTI not only expands our market coverage in industrial, telecom, optical and datacom but it also strengthens our demand creation resources. RTI is a reputable player in the region delivering a breadth of engineering services from basic circuit design to total product solutions."
The transaction has received all necessary regulatory approvals and is expected to close in the next 30 days.
For the fiscal year ended June 30, 2012, Avnet generated revenue of $25.7 billion. But sales for the second quarter of the current fiscal year, ended Dec. 29, were described as "essentially flat" on a year-over-year basis at $6.7 billion. Meanwhile, the Asian business unit reported year-over-year revenue growth of nearly 11 percent.
Avnet Electronics Marketing is headquartered in Singapore and has offices in more than 50 locations in Asia. Last month, the business unit added Philips Lumileds to its base of supplier partners, thereby strengthening its position in LED lighting solutions.
PUBLISHED MARCH 21, 2013