PHOENIX — Avnet, Inc. (NYSE:AVT) announced today that it has acquired the operating assets of the electronic components distribution business of C.R.G. Electronics Ltd. (CRG), an Israeli company. CRG is a distributor of high quality PC products and electronic components serving the Israeli electronics industry. The transaction has already received regulatory approval.
Founded in 1989 by Mr. Ronny Cohen, CRG provides pre- and post-technical support engineers, marketing, sales and inventory logistics to over 300 customers in the networking/datacom, telecom, defense and industrial segments. For the calendar year 2011, the electronic components business of CRG generated revenue of approximately $23 million. The acquired business will become part of Avnet Israel, a business region of Avnet Electronics Marketing EMEA.
“The acquisition of CRG will strengthen our position in the design intensive Israeli high-tech market by adding complementary product lines and a highly reputable technical team,” said Patrick Zammit, president of Avnet Electronics Marketing EMEA. “CRG’s technical resources and customer service commitment will help us to further enhance our strategy of providing technical support to our Israeli customers at the point of design and support them with global fulfillment capability from manufacturing ramp through end of life.”
The investment is expected to be immediately accretive to earnings and supports Avnet’s return on capital goal of 12.5%.