PHOENIX— August 1, 2011 — Avnet, Inc. (NYSE:AVT) announced today that it has acquired J.C. Tally Trading Co., Ltd (J.C. Tally) and its affiliate Shanghai FR International Trading, an interconnect, passive and electromechanical components (IP&E) distributor in Asia with operations in Taiwan and China. J.C. Tally generated revenue of approximately US$90 million in calendar 2010. With this acquisition, Avnet Electronics Marketing Asia expands its position as the number one IP&E distributor in the region.
Harley Feldberg, President, Avnet Electronics Marketing global commented, “This acquisition supports our stated strategy to expand our IP&E business globally and further expands our presence in the fast growing Asia market. The IP&E market in Asia is highly fragmented and this acquisition provides another opportunity to accelerate our growth in the region by adding new suppliers and customers.”
Founded more than 30 years ago, J.C. Tally has approximately 140 employees serving a broad base of customers from eight locations across Taiwan and China. With a focus on strong technical support, J.C. Tally’s line card includes complementary suppliers such as NCC, Kemet, Panasonic, Coiltronics and Bussman. J.C. Tally will be integrated into the operations of Avnet Electronics Marketing Asia. The transaction is expected to be immediately accretive to earnings and supports Avnet’s long-term return on capital goal of 12.5%.
Stephen Wong, president of Avnet Electronics Marketing, Asia commented, “By extending the range of our product offerings, this acquisition enables us to provide more options to our customers, thereby strengthening our competitive position in the IP&E business in Greater China and providing cross selling opportunities to the combined customer base. The combination of the talented employees from J.C Tally and Avnet’s scale and scope advantages in the region will allow us to deliver superior value to our trading partners and enhance our position as the largest IP&E distributor in Asia.”
