Nu
Horizons Electronics Corp. Signs Letter of Intent to Acquire DT Electronics, a UK-based Technical Electronic Components
Distributor
Melville,
NY - June 15, 2006 - Nu Horizons Electronics Corp.
(NASDAQ:NUHC), a leading global distributor of advanced
technology active semiconductor, display and system solutions,
today announced they have signed a non-binding letter
of intent to acquire DT Electronics, a franchised technical
distributor of electronic components based in Coventry,
United Kingdom. For its most recent fiscal year ended
March 31, 2006, DT Electronics' has reported unaudited
revenues of approximately US$25 million.
Consummation
of this transaction is subject to certain requirements,
including the satisfactory completion by Nu Horizons of
its due diligence investigation and the execution by the
parties of a definitive purchase agreement that has been
approved by Nu Horizons' board of directors. The transaction
is expected to close on or about August 15, 2006. Financing
for the acquisition will come from Nu Horizons' existing
cash on hand plus borrowings on current bank lines of
credit.
Established
in 1987, DT Electronics' products come from leading suppliers
of semiconductors, power supplies and passive components.
Their customers include those in broadcast, communications,
industrial, instrumentation, medical and consumer electronics
markets. DT Electronics is distinguished by leadership
in technical design-in work and has received numerous
supplier and customer awards in recognition of this expertise.
Arthur
Nadata, chairman and CEO for Nu Horizons Electronics states,
"We are very pleased to have reached a preliminary
agreement to acquire DT Electronics. We expect that our
acquisition of DT will establish a footprint for Nu Horizons'
Distribution business within the European market. We believe
that the acquisition will be synergistic due to each company's
complimentary supplier base, limited line card and demand
creation business philosophy. Following the acquisition,
we intend to operate with one seamless global infrastructure
and operating system, combining industry-leading technical
sales and field application engineers with world-class
logistics in our effort to set a new industry standard."
Tony
Frere, managing director for DT Electronics added, "DT
Electronics looks forward to finalizing our agreement
with Nu Horizons Electronics. They have established a
strong presence and reputation within the Americas and
Asia Pacific. Both companies share a similar vision of
having a limited line card and customer-centric approach
to conducting its business by gaining a deep understanding
of suppliers' products and technologies and customers'
requirements to deliver optimal service and support."
About
Nu Horizons Electronics Corp.
Nu Horizons Electronics Corp. is a leading global distributor
of advanced technology semiconductor, display and system
solutions to a wide variety of commercial original equipment
manufacturers (OEMs) and Electronic Manufacturing Services
providers (EMS). With sales facilities in 47 locations
across North America, Europe and Asia and regional logistics
centers throughout the globe, Nu Horizons partners with
a limited number of best-in-class suppliers to provide
in-depth product development, custom logistics and life-cycle
support to its customers. Information on Nu Horizons and
its services is available at http://www.nuhorizons.com.
Except
for historical information contained herein, the matters
set forth in this news release are forward looking statements
that involve certain risks and uncertainties that could
cause actual results to differ from those in the forward-looking
statements. When used in this press release, words such
as "anticipate," "believe," "estimate,"
"expect," "intend" and similar expressions,
as they relate to Nu Horizons or its management, identify
forward-looking statements. Such forward-looking statements
are based on the current beliefs of Nu Horizons' management,
as well as assumptions made by and information currently
available to its management. Actual results could differ
materially from those contemplated by the forward-looking
statements as a result of certain factors such as the
level of business and consumer spending for electronic
products, the amount of sales of Nu Horizons' products,
the competitive environment within the electronic component
industry, the ability of Nu Horizons to continue to expand
its operations, the ability of Nu Horizons to consummate
the acquisition of DT and to integrate DT's operations,
the level of costs incurred in connection with Nu Horizons'
expansion efforts and the financial strength of Nu Horizons'
customers and suppliers. Investors are also directed to
consider other risks and uncertainties discussed in documents
filed by the Company with the Securities and Exchange
Commission. Nu Horizons does not undertake any obligation
to update such forward-looking statements. |
