Avnet Buys Chip Distributor

Electronic components distributor Avnet Inc. of Phoenix announced this week that it has acquired YEL Electronics Hong Kong Ltd., a distributor of semiconductor components in the Asia region. Terms of the deal were not disclosed.

YEL generated revenue of approximately $200 million in FY2007 with over 80 percent coming from IP&E (interconnect, passive and electromechanical) products, Avnet said, and has more than 2000 customers in eight countries. The company will now be called Avnet YEL and will operate as a separate Avnet division.

Avnet made the acquisition through Avnet Electronics Marketing, one of its two operating groups. Avnet Electronics Marketing distributes components to electronic OEMs, manufacturing services providers and component manufacturers throughout North America, Brazil, Europe, the Middle East, Africa and Asia.

"With this acquisition, we have increased our IP&E business in Asia by over 50 percent and become the largest IP&E distributor in the region," said Harley Feldberg, president of Avnet Electronics Marketing. "The IP&E distribution industry in Asia is highly fragmented, and Avnet intends to actively participate in its consolidation."

Avnet said the transaction is expected to be immediately accretive to earnings, excluding minimal integration charges.

For more information, visit: www.avnet.com