Arrow Electronics Inc. today reported it has completed its acquisition of
Pioneer-Standard Electronics Inc.'s Industrial Electronics Division (IED).
The price was approximately $230 million, subject to adjustment based upon an audit
of the assets and liabilities being acquired.
According to Thomas Weisel Partners LLC, New York, the Cleveland-based Pioneer's
IED group contributed $849 million to the distributor's $2.04 billion in calendar
year 2002 sales. The IED business at the time of the initial agreement, Thomas Weisel
said, represents approximately $700 million in annualized revenue, excluding the
For Arrow, in part, the acquisition means gaining strength in power supply lines
and design expertise as well as adding strategic suppliers such as Infineon
Technologies AG in North America, said Jan Salsgiver, president, North American
Arrow said it is confident it will gain cost synergies of at least $60 million annually
from the Pioneer-Standard acquisition and expects the additional business to be
accretive to annual earnings per share of at least 20 cents in the first full
year of integration.