WASHINGTON (dpa-AFX) - Electronic components distributor Avnet Inc. (AVT) Wednesday agreed to acquire the shares of RTI Holdings Ltd., a value-added distributor of wireless, optical, telecom, and industrial components in Hong Kong and China. The company will also acquire the shares of three related entities - RTI Technology China Limited, Eastele Technology China Limited, and DSP Solutions Limited.
The financial terms of the deal were not disclosed.
The deal is expected to be immediately accretive to earnings and supports Avnet's return on capital goal of 12.5 percent, the Phoenix, Arizona-based company said.
The deal has received all necessary regulatory approvals and is expected to close in the next 30 days.
'This acquisition is important to Avnet Electronics Marketing as the combination of RTI's focused technical expertise and Avnet's scale and scope further strengthen our competitive edge as we continue to grow in Asia,' said Harley Feldberg, president Avnet Electronics Marketing.
'This transaction also complements our existing offerings of product lines and allows us to expand our value proposition to our customers.' added Feldberg.
Founded in 1989 and headquartered in Hong Kong, RTI has a strong presence in China serving over 700 customers across a range of end markets and has over 120 sales/FAE/CS employees. The company generated revenue of about $80 million in the 2012 calendar year. The acquisition will be integrated into Avnet Electronics Marketing, Asia.
Avnet stock closed Wednesday at $36.58, up 1.30%, on the NYSE.
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