Arrow to buy Beijing-based distributor
The Arrow Electronics building in Melville (June 3, 2004) Credit: Newsday, 2004 / Michael E. Ach
Melville-based Arrow Electronics Inc. has signed an agreement to acquire all the assets and operations of the distribution business of Seed International Ltd., which has 14 offices across China.
Seed, headquartered in Beijing, mainly sells Texas Instruments products and provides technical support services. It has about 200 employees, including 100 in "value-added engineering" services, and had about $90 million in annual sales in its most recent fiscal year-end report.
"Seed is a highly recognized brand for value-added distribution and engineering. This acquisition brings Arrow an expanded presence in China while strengthening our relationship with a key supplier," Peter T. Kong, president, Arrow Global Components, said.
"This transaction should enhance our market position through increased demand creation activities and greater customer penetration in this fast-growing market."
Arrow, an electronics wholesaler founded in 1935, has a market capitalization of $4.2 billion and employs about 12,700 workers. It had net income of $528.9 million on sales of $19.73 billion in the trailing 12-month period.
The Seed buy is expected to close in the third quarter of this year.
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