Platinum Equity Acquires Tech Wholesaler Ingram Micro

The transaction, valued at 7,2 billions of dollars, will leverage Platinum's financial resources and global operations and accelerate growth and execution of distributor initiatives.

The investment company Platinum Equity has announced the signing of a definitive agreement to acquire Ingram Micro, the global provider of technology logistics services and solutions, a HNA Technology, member of HNA Group, in a transaction valued at 7,2 billions of dollars, which is expected to be completed in the first half of 2021, subject to customary regulatory and shareholder approvals.

Founded in 1979 and based in Irvine (California – EU), Ingram Micro “is an integral part of the technology and commerce ecosystems, helping its partners maximize the value of the technology they manufacture, sell or use. The company generated sales worth more than 47.000 million $ in the fiscal year 2019.

“Ingram Micro is an industry leader, one of the largest companies in the world and will be a fundamental investment in our portfolio - said the president and CEO of Platinum Equity, Tom Gores-. “We have the resources and experience to help the company pursue an aggressive agenda of growth and transformation.”.

With more than 35.000 employees and operations in 60 countries, The company provides services to more than 250.000 clients and partners with more than 2.000 suppliers, including the world's best-known technology companies.

Through its vast global infrastructure and cloud focus, mobility, the life cycle of technology, supply chain and technological solutions, Ingram Micro enables business partners to operate more efficiently and successfully in the markets they serve.

“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”, subraya Jacob Kotzubei, partner of Platinum Equity, whose team has led multiple technology transactions, including Platinum Equity's recent investment in Vertiv.

As this manager adds, “We have been pursuing this opportunity for a long time and have been impressed by the company's ability to thrive as we continue to navigate these fluid and challenging times.”. “We will work closely with the Ingram Micro leadership team to maintain that momentum and build on the company’s success.”.

When the purchase is complete, Alain Monié will continue to lead Ingram Micro as CEO, and the company will remain headquartered in Irvine.

“The experience of the sector, Platinum's global operational capabilities and financial resources make it the ideal partner - adds Monié -. Working as a team provides an opportunity to further strengthen our competitive advantage in the cloud, accelerate our digital transformation and accelerate the expansion of our portfolio of solutions and services, particularly for high value markets”.

Other advantages that Monié highlights is that “we will also be able to expand our geographic reach even faster.”, as we penetrate new industries and verticals. We will maintain a strong balance sheet and gain additional flexibility and resources to execute our long-term strategic objectives.. HNA has been a good partner for Ingram Micro, which has allowed us to continue innovating and expanding our global businesses. We hope to have the opportunity to accelerate this trajectory with Platinum”.

For your part, Wang Duan, president of HNA Group North America, points out: “We are pleased to have reached an agreement that offers a strong return on investment, while ensuring Ingram Micro has a partner committed to investing in its future growth. We wish Alain and his team the best and are confident that Ingram Micro will continue to be successful in this exciting new phase of growth and development under Platinum ownership.”.

To the CEO of Platinum Equity, Matthew Louie, “the Ingram Micro scale, Diverse customer and supplier relationships and track record of innovation create the perfect platform for us to help accelerate growth, both organically and through additional mergers and acquisitions. “It also provides exciting opportunities in one of the fastest growing technology sectors as corporations continue to migrate to cloud or hybrid solutions.”.

Morgan Stanley & Co. LLC y Goldman Sachs & Co. act as financial advisors, and Morgan Lewis as legal advisor, of Platinum Equity in the acquisition of Ingram Micro. Willkie Farr & Gallagher LLP is providing financial legal advice and debt financing commitments have been obtained from J.P.. Morgan, Bank of America y Morgan Stanley Senior Funding, Inc.

Davis Polk provides legal advice to HNA Technology on the sale of Ingram Micro and J.P.. Morgan is acting as financial advisor in connection with the transaction.