US-based electronics distributor Ingram Micro has agreed to be acquired by China’s Tianjin Tianhai for USD 38.90 a share in cash, with the equity value reaching around USD 6 billion. Ingram Micro will become a part of HNA Group, a Hainan-based Fortune Global 500 enterprise group and a leader in aviation, tourism and logistics and the largest stockholder of Tianjin Tianhai. The transaction, which has been unanimously approved by both Ingram Micro’s and Tianjin Tianhai’s boards of directors and is expected to close in the second half, represents a premium of 39 percent over the average closing share price of Ingram Micro for the 30 trading days to 16 February.
Ingram Micro is expected to remain headquartered in Irvine, California, and Ingram Micro’s executive management team will remain in place, with Alain Monie continuing as CEO. All Ingram Micro lines of business and all regional and country operations are expected to continue unaffected.
Adam Tan, CEO of HNA Group, said the company looked forward to supporting Ingram Micro’s management team and strategies, including continued expansion into new geographies, while also offering their vendor and customer partners access to new and complementary offerings. Tan said that Ingram Micro will, after the transaction, become the largest member enterprise of HNA Group in terms of revenue, and will help facilitate the internationalization process of the group.
With the acquisition, HNA Group will have access to business opportunities in emerging markets, with higher growth rates and better profitability. The addition will also help the logistics sector of HNA Group transform from a logistics operator to a supply chain operator, and provide one-stop services while improving efficiencies.
The deal is subject to regulatory approvals in various jurisdictions, as well as the approval of Ingram Micro’s and Tianjin Tianhai’s stockholders and the satisfaction of other customary closing conditions. Following the deal, Ingram Micro will suspend its quarterly dividend payment and share buy-back programme prior to the closing of the transaction. The company will report its fourth quarter results on 25 February.