CHS in worldwide acquisition spree

Miami-based CHS Electronics is continuing its drive to become a worldwide player by buying four distribution companies based in South America and Eastern Europe.

Last year CHS bought Brazil-based distributor Compexpress Informatica, which had revenues of $51 million. It also bought Ameritech Argentina, with sales of $18 million. The Agentinian deal included Ameritech Exports, a $13 million turnover operation for Compaq products, which will be closed down.

Atlantis Skupina, a Slovenian distributor, was CHS? first purchase in the country and expands its revenues across the region to $40 million per month. The four acquisitions will boost CHS? turnover by $120 million this year.

According to Craig Toll, CHS? chief financial officer, the acquisitions are in line with the company?s long-term strategic objective of ?consolidating in those areas with a CHS presence and expanding into those areas without such a presence?. He said it was easier to buy into existing companies than set up its own because there was a lack of spare managers to send out to new markets.

CHS has been investigating various options to raise cash in an attempt to turn around its fortunes and distance itself from recent financial troubles (PC Dealer, 28 May).

Toll refused to specify how the distributor was paying for the four acquisitions.

Commenting on CHS? financial position, Toll said that as a distributor it was always searching for further finance but that it was satisfied with paying its bills on time rather than in the first ten days.

Toll refused to comment on whether CHS was still in the frame to buy components distributor Karma as the two began talks in May.