• Print
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • big-banner-ad_2-sean
  • mse-big-new-banner-03-17-2016-416616a-tonernews-web-banner-mse-114
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 7035-overstock-banner-902x177
  • 4toner4
  • Video and Film
  • 2toner1-2


 user 2013-06-23 at 9:04:20 am Views: 92
  • #2164
    Ingram Micro to Acquire Leading IT Distributor in Asia Pacific
         Acquisition of Tech Pacific Strengthens Company's Regional Presence
          Transaction Expected to be Accretive to Fiscal Year 2005 Earnings

    SANTA ANA, Calif.– In A move that significantly strengthens the company's position in the growing Asia Pacific region, Ingram Micro Inc. (NYSE: IM) today announced that it has signed a definitive agreement to acquire Tech Pacific, one of the region's largest technology distributors, for Australian $700 million (approximately US $493 million) in cash, which includes the assumption of debt. The transaction is expected to be accretive to Ingram Micro's 2005 earnings (excluding integration costs) and close by the end of 2004, subject to customary closing conditions.

    Tech Pacific, established in 1981 and with principal operations in Sydney, generated Australian $3.1 billion in revenues and operating margins of approximately two percent of revenues for the 2003 fiscal year, based on Australian generally accepted accounting principles. The privately-held company employs approximately 1,800 people and operates 15 distribution centers in Australia, New Zealand, India, Hong Kong, Malaysia, Singapore and Thailand. It serves more than 25,000 resellers and 75 vendors with a portfolio of more than 10,000 products.

    "As the only global IT distributor with operations in Asia Pacific, we have long recognized the growth opportunities of the region," said Kent Foster, chairman and chief executive officer, Ingram Micro Inc. "This acquisition provides a giant leap forward in our regional development. Tech Pacific is a strong, profitable player in some of the region's key markets. It is the market leader in two of the region's most stable markets — Australia and New Zealand — as well as the rapidly growing, emerging market of India. Sales have outperformed the overall market, and every country-based business unit generated an operating profit last year."

    Greg Spierkel, president, Ingram Micro Inc., added that Tech Pacific's chief executive officer Shailendra Gupta and chief financial officer Guy Freeland will be retained, strengthening Ingram Micro's leadership structure in the region. Alain Monie, president, Ingram Micro Asia Pacific, will continue to lead the region.

    "Tech Pacific has skilled, seasoned managers who have been highly effective in growing the business and enhancing profitability in developing markets," Spierkel said. "The combined organization will substantially benefit from their expertise."

        Key Strategic Benefits
        * Ingram Micro Asia Pacific will nearly double in size in terms of
          revenues and become the leading distributor in India, Australia, New
          Zealand, Malaysia, Hong Kong and Singapore.
        * Profitability for Ingram Micro Asia Pacific will significantly improve,
          with regional operating margins expected to strengthen in the 2005
          fiscal year.  Cost and operational synergies are expected to offset some
          revenue loss resulting from market overlap in certain countries.
        * Customers will benefit from the two companies' complementary product
          portfolios and strong vendor relationships.  While both companies have
          diverse product offerings that include systems, networking and
          peripherals, Ingram Micro has a large components mix and Tech Pacific is
          stronger in software.  Together, they are expected to create a product
          portfolio that is unparalleled in the region.
        * Tech Pacific's outstanding sales initiatives and brand management
          capabilities are expected to serve as best-practice models for Ingram
          Micro operations elsewhere in the region.  The company employs a variety
          of sales strategies -- ranging from e-commerce and call centers to
          telemarketing and outbound sales teams -- strengthened by loyalty
          programs that enhance customer retention. Many of Tech Pacific's
          customer accounts have been active for more than a decade.
        * Tech Pacific has developed an outsourced logistics function for the
          vendor community, which Ingram Micro plans to expand to other countries
          in the region, complementing the Ingram Micro Logistics unit in North
        * The transaction is expected to be accretive to Ingram Micro's earnings
          for the 2005 fiscal year, excluding integration costs.

    Tech Pacific's Gupta said that the transaction provides strategic benefits for many of the company's stakeholders.

    "We've been seeking a strategic partner that could help our customers — both resellers and vendors — expand their reach into new products, services and geographies," Gupta added. "At the same time, we wanted to ensure a stable transition for our associates. Ingram Micro is the world's largest distributor and the only distributor with a truly global presence, so a combination offers an ideal strategic fit."

    According to Spierkel, Ingram Micro intends to integrate the Tech Pacific operations into its Asia Pacific business unit, with integration activities commencing in early 2005.

    * Post was edited: 2004-09-28 10:35:00