Ingram Micro To Acquire DBL
By Colleen Bohen -- TWICE, 6/18/2007
SANTA ANA, CALIF. — Ingram Micro has entered a definitive agreement to acquire DBL Distributing at an estimated purchase price of $96 million.
The CE distributor will be operated as a wholly-owned subsidiary of Ingram Micro, and will retain its brand name and business model. DBL founder and current president/CEO David Lorsch will remain with the company for one year. Henry Chiarelli, chief merchandising officer, will become president when the deal is final.
The purchase of DBL, a leading CE accessories supplier to independent dealers and e-tailers, compliments Ingram Micro's core IT offering and that of its AVAD custom install subsidiary, which was acquired two years ago.
"Our acquisition of DBL Distributing is another step forward in Ingram Micro's consumer electronics strategy," said Greg Spierkel, Ingram Micro's CEO. "This strategy positions Ingram Micro at the forefront of two significant trends: the continuing convergence of commercial and consumer technologies and the growing importance of retailers in the marketplace. The transaction is an example of how we plan to deploy capital in the future — through strategic acquisitions that spur growth, enhance profitability and expand our addressable market."
Lorsch told TWICE that he has had informal discussions with Ingram Micro over the past few years. He said that Ingram's financial resources, efficiencies of scale and competencies will allow DBL to "expand harder, faster and stronger" without looking for outside financing or partners. He believes DBL has the potential to grow from its current base of $300 million in annual revenue to in excess of $1 billion.
DBL will remain a stand-alone company with its own management team and inventory and order platforms, Lorsch said, and the transition is expected to be seamless for customers and vendors.
Lorsch added that the decision to sell his 18-year-old "baby" was bittersweet. He said he "hasn't a clue" as to what he will do next — except that he knows that he won't retire. — Additional reporting by Alan Wolf
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