Distributor Premier Farnell to be sold to Swiss company Datwyler

June 15, 2016 // By Peter Clarke
Premier Farnell plc (Leeds, England), distributor of electronic components (also operating as element14), has agreed a sale of the company to Datwyler Holding AG (Altdorf, Switzerland) for a cash offer of 165 pence (UK£1.65) per share.

This values the share capital of Premier Farnell at approximately £615 million (about $870 million) and implies an enterprise value of £792 million (about $1.1 billion). Datwyler is also an electronic component distributor and claims that the combination with Premier Farnell will be a strategic fit.

Premier Farnell had sales in the 2015/2016 financial year of  £903.9 million (about  $1.3 billion) up 2 percent from the previous year's sales of £886.6 million.

The board of directors of Premier Farnell have been advised the offer, which represented a 51 percent premium on the Premier Farnell closing price of 109.3p on June 13, 2016. The combined group will be able to achieve economies of scale compared to Datwyler's stande-alone strategy the companies said.

The combined group, with approximately 4,900 employees, is expected to generate revenue of approximately CHF1.8 billion (about $1.8 billion).

Datwyler has already received support for the acquisition from institutional investors in Premier Farnell representing approximately 18.4 percent of the share capital of Premier Farnell. The deal is still subject to the approval of the shareholders of Premier Farnell and antitrust consent in Austria, Germany, Poland and the US.

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