3rd Oct 2007 07:15
3 October 2007
Premier Farnell plc
Premier Farnell announces intention to acquire in the Indian market
Premier Farnell plc (Premier Farnell), the leading multi-channel, high service distributor of essential products and services to millions of engineers and purchasing professionals globally, announces that it has signed a letter of intent with Hynetic Electronics Pvt Limited (Hynetic) to acquire the assets and business carried on by Hynetic in India as an existing authorised distributor of `Farnell' products (Farnell Business).
Hynetic, a distribution business headquartered in Bangalore, has operated as an authorised distributor for Farnell for over seven years already and has developed strong customer relationships and a reputation for high service over that time. The business has established sales offices in eight major electronics cities throughout India where it employs over 30 people.
Premier Farnell has identified India as a prime growth area and a key market in which to drive forward its strategy for profitable growth through a focus on the electronic design engineer (EDE) segment, the web, Knowledge Centres and through internationalising its business model. The potential acquisition of the Farnell Business, backed by the ongoing commitment of its key personnel, offers Premier Farnell the opportunity to build further its presence in India from a strong, established foundation.
The proposed acquisition will be subject to the satisfactory completion of Premier Farnell's due diligence exercise and the execution and fulfilment of the terms of and conditions to a sale and purchase agreement proposed to be entered into with Hynetic. Completion of the proposed acquisition is currently scheduled to take place by not later than 31 December 2007.
Commenting, Harriet Green, CEO, Premier Farnell, said:
"Our strategy for profitable growth focuses on internationalising our business, concentrating our efforts on the electronic design engineer segment and increasing our web activity; through great collaboration and trusted teamwork Hynetic and Farnell have already established a strong presence for us to build upon further in the exciting and developing Indian market."
For further information, contact:
Harriet Green, Chief Executive Officer Premier Farnell +44 (0) 20 7851 4100
plc Jenny Peters, Head Corporate Communications
Richard Mountain / Harriet Keen Financial +44 (0) 20 7269 7121
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