HNA seals $6b deal for In­gram Mi­cro

China Daily (Hong Kong) - - BUSINESS - By WANG YING in Shang­hai wang_y­ing@chi­nadaily.com.cn

China’s avi­a­tion and ship­ping con­glom­er­ate HNA Group closed a $6 bil­lion ac­qui­si­tion of the world’s top IT prod­ucts distributor In­gram Mi­cro Inc on Tues­day.

In a reg­u­la­tory fil­ing on Tues­day, New York-listed In­gram Mi­cro said that the deal was com­pleted.

Af­ter the trans­ac­tion, In­gram Mi­cro will be delisted from the New York Stock Ex­change and be­come the largest mem­ber en­ter­prise of HNA in terms of rev­enue.

Shang­hai-listed Tian­jin Tian­hai In­vest­ment Co Ltd, an arm of HNA, ex­e­cuted the all-cash deal on be­half of HNA Group.

In­gram Mi­cro re­ported $43 bil­lion rev­enue and $215 mil­lion net profit in 2015, far above Tian­jin Tian­hai’s 720 mil­lion yuan ($104.98 mil­lion) rev­enue and 248 mil­lion yuan net profit dur­ing the same pe­riod.

How­ever, due to wors­en­ing per­for­mance in the US and Euro­pean mar­kets, In­gram Mi­cro’s rev­enue and net profit de­clined 7.4 per­cent and 19.3 per­cent in 2015, re­spec­tively.

An­a­lysts said tra­di­tional IT prod­uct dis­trib­u­tors are be­ing af­fected by the changes brought by mo­bile in­ter­net, greater con­cen­tra­tion of IT en­ter­prises along the in­dus­try chain, and the rise of ma­jor e-com­merce be­he­moths.

“This is a world-level deal for HNA, not only in terms of its suc­cess, but also the sig­nif­i­cance of the deal,” said Li Lei, an in­dus­trial an­a­lyst from Minzu Se­cu­ri­ties Co.

“With the help of In­gram Mi­cro, HNA would gain ac­cess to busi­ness op­por­tu­ni­ties in emerg­ing mar­kets, and have higher growth rates and im­proved prof­itabil­ity,” said Adam Tan, vicechair­man of the board of di­rec­tors and CEO of HNA in Fe­bru­ary.

bil­lion

rev­enue of In­gram Mi­cro Inc in 2015, which pro­duced a net profit of $215 mil­lion

Fur­ther­more, In­gram Mi­cro will be of sig­nif­i­cant help as HNA Group is aim­ing to trans­form from a lo­gis­tics op­er­a­tor to a sup­ply chain op­er­a­tor, added Tan.

Alain Monie, In­gram Mi­cro CEO, said: “In­gram Mi­cro will now be part of a larger or­ga­ni­za­tion that has com­ple­men­tary lo­gis­tics ca­pa­bil­i­ties and a strong pres­ence in China that can fur­ther sup­port the growth and prof­itabil­ity ob­jec­tives of our ven­dor and cus­tomer part­ners.”

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