Avnet acquires Asian IP&E distributor

By Jim Carbone -- Purchasing, 1/3/2008 12:51:00 PM

Avnet, Inc. has acquired YEL Electronics Hong Kong Ltd., a leading distributor of interconnect, passive, electromechanical (IP&E) and limited semiconductor components in Asia.

YEL, which represents about 30 suppliers, generated approximately US $200 million of revenue in 2007 with more than 80% of the revenue coming from IP&E products.

With the acquisition, Avnet gains an established team of employees serving more than 2,000 customers in 8 countries across Asia Pacific. The acquisition also expands Avnet Electronics Marketing’s franchised line card with new IP&E suppliers in the region.

Harley Feldberg, president of Avnet Electronics Marketing global, says the acquisition is a significant step in Avnet’s strategy to accelerate growth: “The IP&E distribution industry in Asia is highly fragmented and Avnet intends to actively participate in its consolidation. The acquisition of YEL provides an excellent opportunity to supplement our organic growth initiatives by adding a well respected regional distributor with a management team that shares our focus on profitable growth,” says Feldberg.

He says with the acquisition, Avnet increases its IP&E business in Asia by more than 50% and becomes the largest IP&E distributor in the region.

Avnet YEL will operate as a specialist division to maintain its focus on IP&E growth.