Chinese investment firm Tianjin Tianhai has acquired IT distributor Ingram Micro in a $6-billion-dollar deal, it was reported today.
Terms of the agreement will see Tianjin Tianhai acquire Ingram Micro for $38.90 per share, with Ingram Micro becoming a part of HNA Group upon close of the merger.
Hainan-based HNA Group is a Fortune Global 500 enterprise group and a leader in aviation, tourism and logistics, and the largest stockholder of Tianjin Tianhai.
The transaction was unanimously approved by both Ingram Micro's and Tianjin Tianhai's boards of directors.
The transaction is expected to close in the second half of 2016, at which point Ingram Micro will operate as a subsidiary of Tianjin Tianhai.
Ingram Micro is expected to remain headquartered California and its executive management team will remain in place, with Alain Monié continuing to lead as CEO. All Ingram Micro lines of business and all regional and country operations are expected to continue unaffected.
"Ingram Micro has clearly established itself as a leading distributor and global provider of IT products and services,” says Adam Tan, vice chairman of the Board of Directors and CEO of HNA Group.
“The company has a proven and talented team and we believe Ingram Micro is unrivalled in its ability to offer industry-leading, differentiated and easy-to-manage solutions to vendor and customer partners worldwide,” he says.
“We look forward to supporting Ingram Micro's management team and strategies, including continued expansion into new geographies, while also offering their vendor and customer partners access to new and complementary offerings,” says Tan.
“We share Ingram Micro's commitment to integrity, innovation and performance and we are confident this transaction will enable Ingram Micro to continue to distinguish itself in the marketplace and meet the needs of its vendor and customer partners better than ever before,” he explains.
Tan says the transaction will see Ingram Micro \ become the largest member enterprise of HNA Group in terms of revenue, and facilitate the internationalisation process of the group.
“With the help of Ingram Micro, HNA Group would have access to business opportunities in emerging markets, which have higher growth rates and better profitability,” Tan explains.
“Furthermore, the addition of Ingram Micro would help the logistics sector of HNA Group transform from a logistics operator to a supply chain operator, and provide one-stop services while improving efficiencies,” he says.
Alain Monié, Ingram Micro CEO says the agreement to join HNA Group delivers near-term and compelling cash value to Ingram Micro stockholders and expects it to provide new opportunities for vendors, customers and associates.
“Innovation, new services introduction, brand management and ensuring the stability and continuity of the businesses joining their enterprise are fundamental to HNA Group's overall strategy,” Monié says.
“As a part of HNA Group, we will have the ability to accelerate strategic investment, as we continue to capitalise on the constant evolution of technology and emerging trends by adding expertise, capabilities and geographic reach,” he explains.
“Additionally, Ingram Micro will now be part of a larger organisation that has complementary logistics capabilities and a strong presence in China that can further support the growth and profitability objectives of our vendor and customer partners,” says Monié.
"HNA Group is committed to maintaining the leadership teams and core values that have made Ingram Micro a trusted partner and industry leader,” he continues.
Monié says as a part of a larger organisation, Ingram Micro’s global associates will have the added opportunity to expand their career objectives while remaining dedicated to Ingram Micro's core principles.
“We are delighted to join forces with HNA Group, a partner who shares our vision for Ingram Micro and is committed to accelerating the growth of our business to provide innovative solutions across the IT ecosystem,” he says.
The transaction is subject to regulatory approvals in various jurisdictions, as well as the approval of Ingram Micro's and Tianjin Tianhai's stockholders and the satisfaction of other customary closing conditions.