Arrow Electronics, Inc. (NYSE: ARW) today announced an agreement to
acquire A.E. Petsche Company ("A.E. Petsche”), a leading provider of
interconnect products, including specialty wire, cable and harness
management solutions, to the aerospace and defense markets.
"With this acquisition, A.E. Petsche will expand Arrow’s product
offering in specialty wire and cable and will greatly increase our
presence in the aerospace and defense markets,” said Peter T. Kong,
president of Arrow Global Components. "This strategic transaction will
add to the breadth of Arrow’s customer base and increase our staff of
highly experienced sales professionals, while allowing for a variety of
cross-selling opportunities with our existing business as well as other
emerging markets.”
"We believe A.E. Petsche will further benefit from Arrow's considerable
global scale, vast customer base, and strong financial resources," said
Glenn Davidson, chief executive officer of A.E. Petsche. "As a result of
this transaction, both Arrow and A.E. Petsche will strengthen their
product portfolio in the aerospace and defense markets.”
A.E. Petsche is headquartered in Arlington, Texas, and distributes
products in the United States, Canada, Mexico, the United Kingdom,
France, and Belgium through 20 locations. With approximately 250
employees, A.E. Petsche provides value-added distribution services to
over 3,500 customers. Total sales in 2008 were approximately $220
million and the acquisition is expected to be accretive to earnings by
$.10 to $.12 in 2010. It is expected that the deal will close by the end
of 2009.
Arrow Electronics (www.arrow.com)
is a global provider of products, services and solutions to industrial
and commercial users of electronic components and enterprise computing
solutions. Headquartered in Melville, N.Y., Arrow serves as a supply
channel partner for approximately 800 suppliers and 130,000 original
equipment manufacturers, contract manufacturers and commercial customers
through a global network of more than 340 locations in 53 countries and
territories.
Safe Harbor
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. This press release includes
forward-looking statements, including statements addressing future
financial results. These statements are subject to a number of risks and
uncertainties that could cause actual results or facts to differ
materially from such statements for a variety of reasons including, but
not limited to: industry conditions, the company’s implementation of its
new global financial system and the company’s planned implementation of
its new enterprise resource planning system, changes in product supply,
pricing and customer demand, competition, other vagaries in the global
components and global ECS markets, changes in relationships with key
suppliers, increased profit margin pressure, the effects of additional
actions taken to become more efficient or lower costs, the company’s
ability to generate additional cash flow and the other risks described
from time to time in the company’s reports to the Securities and
Exchange Commission (including the company’s Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q). Forward-looking statements are
those statements, which are not statements of historical fact. These
forward-looking statements can be identified by forward-looking words
such as "expects," "anticipates," "intends," "plans," "may," "will,"
"believes," "seeks," "estimates," and similar expressions. Shareholders
and other readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on which
they are made. The company undertakes no obligation to update publicly
or revise any of the forward-looking statements.
