Arrow Electronics to Acquire Disway AG
May 25, 2004
Arrow Electronics, Inc. (NYSE:ARW) announced that it has signed a definitive agreement pursuant to which Arrow will acquire all of the issued share capital of Disway AG ("Disway"). Arrow will utilize a portion of its cash and short-term investments on hand (approximately $420 million at March 31, 2004) to fund the purchase price.
Through its subsidiaries, Distar S.r.l. and Holz Elektronik GmbH, Disway distributes electronic components in Italy, Germany, Austria and Switzerland. In 2003, Disway had total sales of approximately EUR 130 million (approximately $155 million). Disway operates through 14 sales offices and has warehouses in Italy and Germany. In the near to medium term Arrow intends to continue to operate Distar and Holz as separate business units.
"We are committed to maintaining Disway's strong technical focus and coverage for the benefit of its suppliers, customers and employees," stated Germano Fanelli, President of Arrow Europe, Middle East, Africa and South America.
"We are pleased to be affiliating ourselves with the Arrow group in Europe," stated Aldo Baccarani, Senior Board member of Disway AG, Frank Holz, Managing Director of Holz Elektronik and Fabio Campana, Managing Director of Distar Srl. "Arrow's resources will enable us to enhance our capabilities and strengthen our focus on our suppliers and customers, who will benefit from Arrow's best in class IT, logistics and supply-chain management services."
"We are delighted to welcome the Disway management and employees to Arrow," stated William E. Mitchell, President and Chief Executive Officer of Arrow Electronics, Inc. "The acquisition of Disway will provide Arrow with additional product lines and access to an even broader customer base, further strengthening our leadership position in Europe."
The transaction is subject to customary closing conditions, including obtaining necessary government approvals, and is expected to be completed within the next four to six weeks.