Global tech distributor Ingram Micro has been acquired by Tianjin Tianhai, a logistics provider that is part of Chinese conglomerate HNA group.
Ingram and Tianjin Tianhai have entered into a definitive merger agreement, which will see the distie sold for around $6 billion. This means Ingram will become a part of HNA Group, a Hainan-based Fortune Global 500 enterprise group dealing in aviation, tourism and logistics. HNA is the largest stockholder of Tianjin Tianhai.
The close of the transaction is expected in the second half of 2016, with Ingram operating as a subsidiary of Tianjin Tianhai. The distie’s headquarters are expected to stay in California, with its executive management team remaining in place and Alain Monié continuing to lead as CEO.
It is believed that all Ingram lines of business, as well as all regional and country operations, will to continue unaffected.
"Ingram Micro has clearly established itself as a leading distributor and global provider of IT products and services. The Company has a proven and talented team and we believe Ingram Micro is unrivalled in its ability to offer industry-leading, differentiated and easy-to-manage solutions to vendor and customer partners worldwide,” said Adam Tan, vice chairman of the board of directors and CEO of HNA Group.
“We look forward to supporting Ingram Micro's management team and strategies, including continued expansion into new geographies, while also offering their vendor and customer partners access to new and complementary offerings. We share Ingram Micro's commitment to integrity, innovation and performance and we are confident this transaction will enable Ingram Micro to continue to distinguish itself in the marketplace and meet the needs of its vendor and customer partners better than ever before."
Ingram CEO Alain Monié added: "Our agreement to join HNA Group delivers near-term and compelling cash value to our stockholders and we expect it to provide exciting new opportunities for our vendors, customers and associates. Innovation, new services introduction, brand management and ensuring the stability and continuity of the businesses joining their enterprise are fundamental to HNA Group's overall strategy.
“As a part of HNA Group, we will have the ability to accelerate strategic investment, as we continue to capitalise on the constant evolution of technology and emerging trends by adding expertise, capabilities and geographic reach. Additionally, Ingram Micro will now be part of a larger organisation 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 has 122 distribution centres in 160 countries. In 2015, the distie reported $31.7 billion in revenue for the first three quarters of the year, down 2.5 per cent from 2014.