Arrow Electronics to buy Asian components distributor

BY RICHARD J. DALTON JR. | richard.dalton@newsday.com

10:55 AM EST, February 29, 2008

Arrow Electronics Inc. will buy the components distribution business of Achieva Ltd., based in the Asia Pacific region, the Melville-based electronics distributor said Friday.

"With this acquisition, Arrow will gain strong, established relationships with major semiconductor suppliers that will build upon existing partnerships," William E. Mitchell, chairman, president and chief executive of Arrow, said in a statement.

Arrow, one of the top distributors in its field worldwide, just finished a year where its sales exceeded $15 billion. It has acquired a number of other companies to expand its reach.

"The Achieva management team is highly experienced and will be an impressive addition of bench strength to position Arrow for continued profitable growth in the Asia Pacific region," he said.

Achieva's components distribution business employs more than 200 employees in eight countries: Singapore, Taiwan, China, India, Malaysia, Philippines, Thailand, and Korea.

The business focuses on the data communications, telecommunications, lighting, industrial and digital consumer market. Sales in 2006 were $303 million, based on Friday's Euro exchange rate.

Arrow expects to close the deal in 30 to 60 days, boosting Arrow's earnings by 1 cent to 3 cents a share in the first 12 months. The deal is subject to approval by Achieva shareholders.