Synnex Canada To Acquire Consumer Electronics Distributor

Synnex Canada, a subsidiary of broadline distributor Synnex, plans to acquire the Redmond Group of Companies (RGC), including consumer electronics distributor AVS Technologies. <P> Under the deal, announced Tuesday, Toronto-based Synnex Canada will pay $45 million (Can.) for RGC's assets, including about $10 million of debt assumption. The transaction is expected to close at the end of April, after which RGC will operate under the Synnex Canada name. <P> "The acquisition of RGC will allow Synnex Canada to rapidly accelerate its consumer-electronics distribution focus," Synnex President and CEO Robert Huang said in a statement. "We see consumer electronics as a growth area for Synnex, and we expect this transaction to enable new opportunities throughout North America for our consumer-electronics distribution business." <P> RGC had total revenue of about $300 million (Can.) last year, according to Fremont, Calif.-based Synnex. <P> Based in Mississauga, Ontario, RGC is one of Canada's leading providers of consumer audio/video electronics and home-office and appliance brands, including Citizen, Electrohome, Koss, Magnasonic, Sylvania, Memorex and Emerson. AVS Technologies, which has its headquarters in Montreal, is a leading distributor of brands such as SanDisk, Uniden, Case Logic, Cobra, Koss, TDK, One For All and SAKAR and represents more than 10,000 retail storefronts across Canada. <P> "This acquisition expands our depth and breadth in the consumer electronics industry and provides Synnex Canada access to additional customers and product lines," Synnex Canada CEO Jim Estill said in a statement. "We expect the integration of the two organizations to be an efficient transition."

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