Future acquiring Advent; Bell Micro to buy Tenex
More distribution industry consolidations surfaced last week, with Future Electronics and Bell Microproducts reporting separate deals to acquire companies.
Future has agreed to acquire the electronic component distribution business of Midwest regional Advent Electronics Inc. for an undisclosed amount. Bell Micro has signed a letter of intent to purchase the assets of Toronto-based computer products distributor Tenex Data, a division of Axidata Inc., a wholly owned subsidiary of Abitibi-Consolidated, Inc., a leading marketer and manufacturer of communications papers.
Advent Electronics Inc., with corporate offices in Des Plaines, Ill., is a broadline regional distributor with offices in Illinois, Michigan, Iowa, Indiana, Wisconsin and Missouri, in addition to sales offices in New Jersey and Florida. Advent Electronics will retain its name, staff and operating divisions. Warehousing, inventory and common administrative functions will be assumed by Future Electronics' U.S. corporate headquarters located in Bolton, Mass.
Victor Blair will continue to have responsibility for the day-to-day operations of Advent Electronics, Future said.
"Both companies look forward to providing their customers with state-of-the-art supply line management, engineering support for an outstanding array of component suppliers and the most reliable service in the industry," it was said.
Meanwhile, in the Bell Micro deal, Tenex Data is described as a leading Canadian computer products distributor especially focused on the mass storage components and systems market. The division distributes disk, tape and optical drives in addition to other data storage subsystems including RAID and tape library products.
Tenex's headquarters are located in Toronto with additional locations in Montreal, Ottawa and Vancouver. Tenex reported $35 million U.S. in revenues in 1997. Major Tenex product lines include Seagate, Western Digital, ADIC and Digital Equipment Storageworks.
"In its role as the only major Canadian distributor that specializes in storage products, Tenex Data has a strong presence with the reseller and integrator markets," said Don Bell, president and CEO of Bell Microproducts. "We intend to continue Tenex's successful strategy of differentiation through offering technical expertise and other value-added services to resellers. Tenex Data and Bell Micro have similar strategies and our product lines are complementary. Several of our major supplier partners are shared by both companies."
Mr. Bell continued, "Bell Microproducts and Tenex together offer the industry's most complete line of mass storage components and subsystems, as well as value added services. This concentration on data storage products is unique and complementary. We believe this combination will offer significant benefits to our customers, supplier partners and employees. Tenex will bring a valued customer base to our company and will offer, among other products, our BellStor proprietary line of memory products to its Canadian customers. We are pleased to enter the Canadian market with such a prestigious organization," he said.
The acquisition is subject to final negotiation of the definitive agreements and satisfactory completion of due diligence.
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