Acquisition expands Avnet's footprint in the Defense Aerospace vertical
PHOENIX-(BUSINESS WIRE)- Avnet, Inc. (NYSE:AVT) announced today that it has agreed to acquire substantially all of the operating assets of Universal Semiconductor, Inc., "USI Electronics, " a distributor of discrete semiconductor, passive and electromechanical components to the military and aerospace customers. USI Electronics services a broad customer base of small, medium, and large OEM business partners and differentiates itself by having the flexibility to provide same day shipping, same day tape and reeling, and personalized service while offering the technological solutions necessary to compete as a world-class global distributor. This transaction is expected to close within thirty days and will be integrated into Avnet Electronics Marketing, Americas.
"This acquisition is of strategic importance as it enhances our competitive position in the higher value defense and aerospace segment, " said
Ed Smith, president Electronics Marketing, Americas. "USI is a respected leader and established player in the space with a strong emphasis on providing business partners a best-in-class experience. Their value proposition complements our strategy as we extend our leading position in serving the electronic component needs of this vital segment."
Founded in 1982, with headquarters in Fort Lauderdale, Florida, USI Electronics operates on the premise that military component purchasing is made easier by offering superior specialized service. USI's philosophy is to solve the complex component needs of the military customer via a service team offering exceptional product knowledge and service backed by inventory depth and breadth. USI Electronics has 58 employees across five offices in US and one in Denmark. The company generated revenue of approximately US $70 million in the 2011 calendar year.
This acquisition is expected to be immediately accretive to earnings and supports Avnet's return on capital goal of 12.5%.