DBL to Become Ingram Subsidiary; Chiraelli to be Named President
By Colleen Bohen -- TWICE, 6/13/2007
Santa Ana, Calif. — Ingram Micro’s definitive agreement to acquire DBL Distributing will make DBL a wholly owned subsidiary and will make Henry Chiarelli president of the unit once the transaction is final.
Ingram is buying DBL for an estimated price of $96 million. DBL will keep the same brand name, business model and management structure, according to Keith Bradley, president of Ingram Micro North America, in a release.
David Lorsch, DBL’s current president/CEO and founder, told TWICE that he will remain with the company until June 2008. Chiarelli, currently DBL’s chief merchandising officer, said he will become president once the deal is final.
“DBL Distributing is excited to be a part of Ingram Micro and at the prospect of being able to offer a wider range of information technology products to our customer base,” said Lorsch in a release. “Our world-class management team led the company to 18 straight years of impressive annual growth, and we’re looking forward to joining with Ingram Micro to provide the necessary resources and capital to help us continue this legacy.”
Scottsdale, Ariz.-based DBL has approximately 350 employees and reported 2006 sales of nearly $300 million, following four years of double-digit sales growth. According to a release, DBL’s gross and operating margins are double those of Ingram Micro’s core distribution business.
Ingram Micro’s core distribution business primarily IT focused but it has been expanding recently. In 2005, the company bought AVAD, a privately held network of A/V home automation distributors.
The DBL acquisition was intended to strengthen Ingram Micro’s position in CE realm. DBL’s product portfolio features lines from vendors including Philips, Samsung and Sony. As part of the deal, Ingram is also purchasing NXG Technology, DBL’s exclusive brand of custom A/V installation products.
Ingram Micro’s CEO Greg Spierkel said of the deal, “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.” – Additional reporting by Alan Wolf
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