Thursday, 10 December 2020

Electrocomponents To Buy US Supply Solution Company

Electrocomponents says it will acquire Synovos, a developer of integrated supply solutions in the Americas, for a total consideration of $145 million on a debt-free, cash-free basis.

The acquisition is subject to customary closing conditions, including US anti-trust, and is expected to complete in Q1 calendar year 2021. Electrocmponents says Synovos will accelerate delivery of a global integrated supply proposition and significantly strengthen the Americas business.

It expects Synovos and another Electromomponents Group company, IESA to create a global integrated supply proposition in the growing market for value-added solutions.

Synovos is a leading player in integrated supply solutions: managing procurement spend, inventory, strategic sourcing, and has a strong position in North America with blue-chip customers in resilient sectors e.g. pharmaceuticals, consumer health .

Electrocomponents will target revenue synergies from enhanced Americas customer proposition of RS PRO, Allied and Synovos.

Lindsley Ruth (pictured), Electrocomponents’ Chief Executive Officer, commented: “Synovos is a very good business, aligned to our strategy of selectively adding high-quality, value-creating bolt-on acquisitions to the Group. Synovos enables us to expand our value-added solutions offer in the Americas, significantly enhancing our proposition for corporate customers. It is an excellent fit with our existing IESA business and will increase our ability to support clients in managing their procurement, inventory and maintenance needs globally.

“In the past five years we have transformed Electrocomponents into a strong, focused, customer-centric organisation on a clear growth trajectory. We are now taking the business to the next level. Whilst driving organic growth will always be our primary focus, Synovos demonstrates how our disciplined approach to acquisitions can bring valuable capabilities and products into the Group.”

The post Electrocomponents To Buy US Supply Solution Company appeared first on Disti Blog.



source https://distributor.electronicspecifier.com/electrocomponents-to-buy-us-supply-solution-company/

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