Chinese Conglomerate HNA Group To Buy Ingram Micro - Twice

Chinese Conglomerate HNA Group To Buy Ingram Micro

Deal will “accelerate strategic investment,” add complementary logistics capabilities, extend geographic reach
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Global tech distributor and supply-chain services giant Ingram Micro will be acquired for about $6 billion by Tianjin Tianhai, a logistics provider that is part of Chinese conglomerate HNA Group.

Ingram is the world’s largest IT distributor and parent of AVAD, the national distributor of products for the residential and commercial installation markets.

The Ingram and HNA boards have approved the transaction, expected to close in the second half. Ingram Micro will operate as a subsidiary of Tianjin Tianhai, whose largest stockholder is HNA.

HNA Group generated 2015 revenues of $29 billion through its interests in aviation, tourism and logistics. It employs almost 180,000 people worldwide.

As part of HNA, Ingram Micro “will have the ability to accelerate strategic investment” and add “expertise, capabilities and geographic reach,” said Ingram CEO Alain Monié. In addition, Ingram will be part of a larger organization “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."

Ingram expects to remain headquartered in Irvine, Calif., with Ingram’s executive management team in place, including Monié continuing as CEO. All Ingram Micro lines of business and all regional and country operations “are expected to continue unaffected,” Ingram added.

HNA, added Monié, “is committed to maintaining the leadership teams and core values that have made Ingram Micro a trusted partner and industry leader.”

For his part, HNA board vice chairman Adam Tan said HNA will support Ingram’s “continued expansion into new geographies, while also offering their vendor and customer partners access to new and complementary offerings.”

In turn, Ingram will help HNA gain access to business opportunities in emerging markets, which HNA said have higher growth rates and better profitability. The purchase will also help HNA unit Tianjin Tianhai “transform from a logistics operator to a supply-chain operator and provide one-stop services while improving efficiencies."

Ingram Micro will become the largest enterprise within HNA in revenue.

Ingram posted 2014 revenue of $46.5 billion and net income of $267 million. For the first three quarters of 2015, Ingram posted $31.7 billion in revenues, down 2.5 percent, and net profit of $73.9 million, down 50 percent.

Ingram operates 122 distribution centers around the world in 160 countries.

Ingram’s AVAD unit, based in Los Angeles, distributes video, audio, lighting control, content management, whole-home and business automation as well as digital signage and design services to custom installers through 23 locations in North America.

Tianjin Tianhai evolved from a marine shipping company into a logistic industry investor and operator.

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