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Arrow Electronics Acquires the RF, Wireless & Power Division of Richardson Electronics, Ltd.

Mon, 10/04/2010 - 11:13am
MELVILLE, N.Y., Oct 01, 2010 (BUSINESS WIRE) -- Arrow Electronics, Inc. announced that it has signed a definitive agreement pursuant to which Arrow will acquire all of the assets and operations of the RF, Wireless and Power Division of Richardson Electronics, Ltd. ("Richardson RFPD").

Richardson RFPD is a leading value-added global component distributor and provider of engineered solutions serving the global radio frequency ("RF") and wireless communications market. The product set includes solutions for infrastructure and wireless networks, power management and alternative energy markets.

The company has a presence in many markets including wireless infrastructure, digital broadcast, microwave radio, military and aerospace, and satellite communications. The company has a line card of more than 80 leading RF and wireless component manufacturers that includes RF power transistors, passive and connector products, low-power components, amplifiers, digital broadcast components. Richardson RFPD offers its customers an array of value-added services and engineered solutions to meet their needs.

"This acquisition brings Arrow a global presence in the wireless and power conversion markets with specialized expertise in RF engineering and a highly talented team of sales professionals. With the addition of this acquisition, we will increase our footprint in the Asia-Pacific market where growth has been very robust," said Michael J. Long, chairman, president, and chief executive officer of Arrow Electronics.

"Richardson RFPD is one of the few companies in the industry with the ability to design, assemble, manufacture, and test an entire system. This acquisition is aligned with our strategy to diversify into markets that offer superior growth characteristics and increase our portfolio of value-added services."

Richardson RFPD will become a separate operating unit of Arrow Electronics and its headquarters will remain in LaFox, IL. Richardson RFPD has approximately 400 employees and total sales were in excess of $350 million for the fiscal year ended May 29, 2010. The transaction is expected to be $.10-$.20 per share accretive to earnings in the first full year of operations.

The acquisition has been approved by the Boards of Directors of both companies and is subject to the approval of Richardson Electronics' shareholders as well as customary regulatory approvals. The transaction is expected to close in early 2011.

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