Arrow buys Nu Horizons Electronics

By Joseph MalliaSeptember 20, 2010

Arrow Electronics Inc. is buying another Long Island company, Nu Horizons Electronics Corp., in an all-cash deal, the companies said Monday.

Melville-based Arrow did not say how much, overall, it will pay to acquire the semiconductor distributor, but said its per-share payment will be $7 — more than twice the $3.41 Friday closing price of Nu Horizons. Reuters news service estimated the value of the sale at $130 million.

“This transaction represents an excellent value for Nu Horizons' shareholders and a compelling opportunity for our employees, customers and suppliers,” Martin Kent, above, chief executive of Nu Horizons, also based in Melville, said in a news release.

“To compete successfully in today's global marketplace, size and scale are very important. We are pleased to become part of a leading global company with enhanced resources. Arrow's world-class operational capabilities and supply chain will enable Nu Horizons to continue to deliver industry-leading value to our customers,” Kent said.

Nu Horizons has sales facilities in more than 50 locations across North America, Asia, and Europe. It has more than 700 employees, and had total sales of $671 million for the fiscal year ended February 28.

The acquisition has been approved by the boards of directors of both companies and is subject to the approval of Nu Horizons' shareholders. With the buy, Arrow expects to add $.05-$.10 per share to its earnings the first full year of operations.

"This acquisition builds on our strategy to expand our global capabilities, especially in the fast-growing Asia-Pacific region," Michael J. Long, chairman, president, and chief executive officer of Arrow, said in a news statement.

"Nu Horizons' strong customer and supplier relationships and talented employees will allow us to continue to enhance shareholder value."

Arrow, with annual sales of more than $16 billion and more than 11,000 employees, describes itself as a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. It works with more than 900 suppliers and 125,000 original equipment manufacturers, contract manufacturers and commercial customers through a network of more than 310 locations in 51 countries and territories.