Avnet Buys Growth in China

Phoenix-based Avnet (NYSE: AVT  ) is buying Hong Kong's RTI Holdings, RTI Technology China, Eastele Technology China, and DSP Solutions, value-added distributors of telecom equipment and related components in Hong Kong and China, for an undisclosed sum in a transaction slated to close within the next 30 days, Avnet announced Wednesday.

The electronics maker cited "RTI's focused technical expertise," as well as its "strong presence" in the Chinese market as key factors in its decision to buy the company as Avnet works to expand its business in Asia. Avnet has struggled to expand in the Chinese market on its own. From 2010 to 2012, sales into China and Hong Kong were the slowest-growing of Avnet's several business segments, rising just 15% as the company's overall sales grew 34%.

Financial details of the acquisition weren't disclosed, but Avnet did note that RTI had $80 million in revenues in 2012 and predicted that the acquisition will be "immediately accretive to earnings."


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2324149, ~/Articles/ArticleHandler.aspx, 10/1/2014 8:17:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement