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Platinum Equity to acquire Ingram Micro global for US$7.2b

15 Dec 2020

Ingram Micro’s global business could be sold off for US$7.2 billion within the next six months, according to information released by would-be buyer Platinum Equity this month.

In December, Platinum Equity announced that it would buy Ingram Micro and complete the transaction in the first half of 2021 if HNA Technology shareholders and regulators approve.

HNA Technologies currently owns Ingram Micro. Ingram Micro’s global business, which is headquartered in California, generated more than US$47 billion in revenue for the 2019 fiscal year.  The company operates in 60 countries and serves more than 250,000 customers and partners, and it works with more than 2000 vendors.

Platinum Equity chairman and CEO Tom Gores believes that Ingram Micro will become a cornerstone investment in the company's portfolio.

“We have the resources and the experience to help the company pursue an aggressive agenda of growth and transformation.”

Platinum Equity partner Jacob Kotzubei adds that the company has been investing in technology companies 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.”

Ingram Micro CEO Alain Monié will remain on board and the company will remain headquartered in California.

Monié says Platinum Equity is an ideal partner because of its expertise, global operating capabilities, and its financial resources.  He adds that HNA has been a good partner that has allowed the company to expand its business.

“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 Group North America president Wang Duan says the acquisition delivers a ‘strong return’ on his company’s investment.

“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."

Morgan Stanley & Co. LLC and Goldman Sachs & Co. are acting as financial advisors, and Morgan Lewis as legal counsel, to Platinum Equity on the acquisition of Ingram Micro. 

Willkie Farr & Gallagher LLP is providing financing legal counsel, and debt financing commitments have been obtained from J.P. Morgan, Bank of America and Morgan Stanley Senior Funding, Inc.

HNA Technology is receiving legal counsel from Davis Polk. J.P. Morgan is acting as financial advisor in connection with the transaction.

Techday has approached Ingram Micro New Zealand for comment.