British electronic components distributor Premier Farnell announced this week it will be acquired by Swiss distributor Daetwyler Holdings for about $870 million in cash. The companies said in a prepared statement that the deal “creates a leader in high-service distribution of electronic components and in doing so [realizes] significant value for the shareholders of both companies.”
The companies will have combined revenues of approximately 2.5 billion Swiss francs. Daetwyler is comprised of two business groups: Its Technical Components division sells electronic, automation, maintenance and related components and solutions, and its Sealing Solutions division supplies customized sealing solutions to customers in automotive, health care, civil engineering, consumer goods and similar industries.
The acquisition brings together companies with complementary product and service offerings and fits Daetwyler’s strategy to grow in North America, Asia and elsewhere in Europe. It also combines Daetwyler’s focus on maintenance, repair, and operations (MRO) markets with Premier Farnell’s focus on design engineering business.
Commenting on the acquisition, Daetwyler’s Chairman of the Board Ulrich Graf said, “Premier Farnell and [Daetwyler] both have long and successful histories in high-service distribution for electronic components. By combining forces, we expect to significantly increase our competitiveness and extend our product range, facilitating a one-stop-shopping experience for our wide range of customers from a multitude of industries.”
Premier Farnell goes to market as Newark element14 in North America and ranked 9th on Global Purchasing’s 2016 Top Electronic Components Distributors report with $1.5 billion in sales for its fiscal year ended January 31, 2016.