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Avnet Acquires Hong Kong Distributor, Expands in China

21 March 2013

The electronics industry’s largest distributor, Phoenix-based Avnet Inc., is expanding its already-significant presence in China through the acquisition of RTI Holdings Ltd., a value-added distributor of wireless, optical, telecom, data communications, and industrial components in Hong Kong and the People’s Republic of China (PRC).

In addition, Avnet will acquire the shares of three related entities, RTI Technology China Limited, Eastele Technology China Limited, and DSP Solutions Limited. This transaction has received all necessary regulatory approvals and is expected to close in the next 30 days.

“This acquisition is important to Avnet Electronics Marketing as the combination of RTI’s focused technical expertise and Avnet’s scale and scope further strengthen our competitive edge as we continue to grow in Asia,” said Harley Feldberg, president Avnet Electronics Marketing. “This transaction also complements our existing offerings of product lines and allows us to expand our value proposition to our customers.”

Headquartered in Hong Kong, RTI has a strong presence in China serving over 700 customers across a range of end markets including telecom and datacom, industrial and digital home applications. The company has over 120 sales, field application engineers and customer support employees that provide technical support and sales promotion activities to high-tech manufacturing firms across the region.

RTI generated revenue of approximately $80 million in 2012. This acquisition, which will be integrated into Avnet’s Asian Electronics Marketing organization, is expected to be immediately accretive to earnings and will support Avnet's return on capital goal of 12.5 percent.

US-based Avnet and competitor Arrow Electronics Inc. are among the three largest global distributors by revenue in the China market. Taiwan-based World Peace Group is the largest distributor, by revenue, in the Asia-Pacific region.

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