LONDON --- TTI Inc., one of the world's largest distributors of passive and electromechanical components, is being acquired by Berkshire Hathaway, billionaire Warren Buffet's investment vehicle. Terms of the deal, which includes TTI's catalog based distribution business, Mouser Electronics, were not disclosed.
Sales of TTI and its overseas subsidiaries, including the European operations, hit $990 million in 2005 and are projected to reach $1.2 billion in 2006.
TTI, which is headquartered in Fort Worth, Texas, will operate as a wholly owned subsidiary of Berkshire Hathaway (Omaha, Neb). The companies said its management will remain in place and will continue to run TTI's day to day activities.
Paul Andrews, TTI's founder, chairman and CEO, will continue in his current capacity according to a statement from Berkshire Hathaway.
The acquisition is subject to customary closing conditions along with the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close during the first quarter of 2007.
"Paul Andrews is a remarkable man who has built an outstanding business. We are pleased to have the opportunity to add TTI to the Berkshire Hathaway Group," Buffett said in the statement.
Andrews founded TTI in his apartment in 1971 and over 35 years it grew into a business with offices around the world and more than $1 billion in sales. The company employs more than 1,700 people in 19 countries and about 50 locations in North America, Europe and Asia.
"Berkshire is recognized as being one of the most admired companies in the world. They take a long term view of the business and will allow TTI to continue with our growth plans," said Andrews.
He added that plans include international expansion and new product expansion, along with the addition of several key franchises.
TTI's product line includes resistors, capacitors, connectors, potentiometers, trimmers, magnetic and circuit protection components, wire and cable, identification products, application tools and electromechanical devices.