"Try not to become a man of success. Rather become a man of value."
-Albert Einstein
December 09,2020
Platinum Equity to Acquire Ingram Micro
*Financial Information ($USD)
- Enterprise Value: $7.2 Billion
- EV/FY19 Revenue: 0.15x
Transaction Update
- Platinum Equity announced today that it entered into a definitive agreement to acquire Ingram Micro from current owner HNA Group in what is the largest asset disposal by a Chinese company to a non-Chinese buyer this year.
- Ingram Micro generated more than $47 billion in sales for FY 2019.
- The sale is expected to be complete in the first half of 2021, subject to approvals.
- Following the acquisition, Ingram will retain CEO Alain Monié and remain headquartered in Irvine California.
martinwolf Analysis
- Re-Shoring: This deal brings Ingram Micro back under American ownership, capping four years as a subsidiary of Chinese conglomerate HNA Group following its acquisition in 2016. Chinese ownership always hung over Ingram Micro in public consciousness — despite the company’s insistence that it operated as a “separate, stand alone company” protected from Chinese influence — and there were reports earlier this year that HNA Group could betaken over directly by the Chinese government due to mounting past-due debts.
- Paying the Piper: HNA Group has struggled with one of the largest corporate debt loads in China after a series of acquisitions spanning from golf courses to the world’s largest technology distributor. While Ingram Micro was HNA’s largest source of revenue, liquidity became a concern especially as HNA’s air travel lines were hit hard by the pandemic and the conglomerate has been forced to divest its holdings.
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Smart Money: Platinum partner Jacob Kotzubei has been active in the channel for more than 20 years, arguably creating more value than all but a few founders. Some of his greatest hits include CompuCom, Data Blue, Pomeroy and martinwolf client Canvas Systems.
For more information about this transaction, click here to read the press release.
*Financial information from the press release
martinwolf was not the advisor in this transaction.
