Ingram Micro sold to private equity firm for $7.2bn
Deal between HNA Technology and Platinum Equity expected to close in first half of 2021
Ingram Micro is set to to be sold to Platinum Equity for a cool $7.2bn.
Reports that Ingram's Chinese owner HNA Technology was in talks with the private equity house about a potential sale emerged in August. HNA bought Ingram in 2016 for $6bn but has been shopping the broadliner around since late 2018 as it sought to reduce its debt. Private equity firm Apollo Global was reportedly interested in buying Ingram last year but subsequently went on to acquire its rival Tech Data earlier this year for over $5bn.
Earlier this year, a social media post from HNA stated that the firm was at "the point of life and death" as it struggled with debs after a series of investments that total $40bn.
"Ingram Micro is an industry leader, one of the largest companies in the world and will be a cornerstone investment in our portfolio," said Platinum Equity chairman and CEO Tom Gores.
"We have the resources and the experience to help the company pursue an aggressive agenda of growth and transformation."
Ingram generated over $47bn in revenue in its FY19. It boasts a headcount of 35,000 and operates across 60 countries.
Jacob Kotzubei, partner at Platinum Equity, added: "We know Ingram Micro and the industry very well and have been investors in the technology and IT distribution and solutions sectors for more than a decade.
"We have been pursuing this opportunity for a while and have been impressed by the company's ability to thrive while continuing to navigate these fluid and challenging times. We will work closely with the Ingram Micro leadership team to sustain that momentum and build on the company's success."
The deal is expected to close in the first half of 2021 and Ingram's chief exec Alain Monié will continue in his role heading the distie, which will continue to be headquartered in California.
"Platinum's sector expertise, global operating capabilities and financial resources make it the ideal partner," stated Monié.
"Teaming with Platinum provides an opportunity to further strengthen our competitive advantage in the cloud, speed our digital transformation and accelerate the expansion of our solutions and services portfolio, particularly for high value markets.
"We will also be able to broaden our geographic reach even faster, while penetrating new industries and verticals. We will maintain a strong balance sheet and will gain additional flexibility and resources to execute on our long-term strategic objectives.
"HNA has been a good partner for Ingram Micro, enabling us to continue to innovate and expand our global businesses. We look forward to the opportunity to accelerate this trajectory with Platinum."
Wang Duan, president of HNA Group North America, added:"We are pleased to have reached an agreement that delivers a strong return on HNA's investment while ensuring that Ingram Micro has a partner committed to investing in its future growth.
"We wish Alain and his team well and are confident that Ingram Micro will continue to succeed in this exciting new phase of growth and development under Platinum's ownership."