SVG Capital PLC
27 April 2005
For immediate release 27 April 2005
Acquisition of Memec by Avnet Inc.
SVG Capital plc has been advised by Permira and SV Investment Partners of the
'Avnet Inc (NYSE: AVT) ('Avnet')and Memec Group Holdings Limited ('Memec')
announced today that they have reached a definitive agreement for Avnet to
acquire Memec in a stock and cash transaction valued at approximately $676
million, including the assumption of approximately $194 million of Memec's net
debt. Under the terms of the agreement, Memec investors will receive a total of
approximately 24.011 million shares of Avnet common stock plus approximately $64
million of cash. The transaction is expected to generate annual synergies of
approximately $130 million from cost savings (including $10 million from reduced
interest expense) and is expected to be immediately accretive to earnings
(excluding integration charges). The closing of the transaction, which is
subject to customary regulatory approvals, is anticipated in 60 to 90 days.'
Closing of the acquisition is subject to anti-trust clearances. Funds advised
by Permira and SV Investment Partners will be subject to a six month lock-up
period in relation to their holding in Avnet, Inc.
Following this acquisition, SVG Capital expects to receive up to £4.7 million in
cash proceeds, with its remaining holding in Avnet (prior to the application of
any discount) valued at £36.2 million (based on a closing price of Avnet shares
on 26 April 2005 of $17.21).
At 31 December 2004, SVG Capital's holding in Memec was valued at £29.7 million.
For further information, please contact:
SVG Capital plc 020 7010 8900
This information is provided by RNS
The company news service from the London Stock Exchange