Avnet Buys Growth in China
Mar 20th 2013 7:24PM
Updated Mar 20th 2013 7:26PM
Phoenix-based Avnet 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."
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