Electronics distributor Avnet, Inc. is expanding its presence throughout Europe with the acquisition of MSC Investoren GmbH, a European distributor of electronic components, embedded computing technology and display solutions. Avnet announced the deal today and said it will acquire “MSC Group” in a two-step approach, first acquiring a majority interest in the company after regulatory approval has been granted with the intent to acquire the remainder “within a short time frame.”
MSC Group is a value-added distributor that leverages a combination of distribution, production and system integration capability to address emerging customer demand for more complex electronic products. The company generated more than $450 million (US) in revenue in 2012, with embedded computer technology (including display solutions) accounting for almost 50% of sales.
“The addition of the MSC Group is a strong fit with our strategy to invest in margin-enhancing acquisitions that complement our existing design and supply chain services, while also expanding growth opportunities in the region,” said Harley Feldberg, president of Electronics Marketing Global. “With extensive engineering resources and a strong focus on design-in services, the MSC Group has built a solid reputation as a single source for complete solutions serving customers in the European industrial electronics market. By leveraging the combined skills of both organizations, we will be well positioned to better serve the needs of our customer base in the region.”
Founded in 1979, MSC Group serves customers in the automotive, industrial automation, telecom, information systems and medical device markets. MSC Group’s logistics and distribution capabilities, along with its competence in board-level assemblies and system integration, allows it to address customers’ demand profiles along the electronics value chain. With a team of field application engineers and product specialists, the distributor provides a range of technical support throughout the entire product development chain from design to finished system.
MSC Group will be integrated into the European business region of Avnet’s Electronics Marketing operating group.
MSC Group’s product portfolio complements Avnet’s core business in the region and improves its offering of microcontrollers, memory, programmable logic, opto and LED products, said Patrick Zammit, president of Avnet Electronics Marketing EMEA.
“The embedded computing and display solutions businesses enhance our competencies in systems-level solutions, thereby increasing our value add with customers in these higher growth product segments,” Zammit added. “We are excited about MSC Group and its talented employees as this represents another step in our business evolution as we progress up the technology value chain and provide additional services that our customers need.”
The acquisition is expected to be immediately accretive to earnings and supports Avnet's long-term return on capital goal of 12.5%, the company said.