US firm to take over'¨Premier Farnell as'¨Swiss rival drops out

The US takeover of electronics distributor Premier Farnell is set to go ahead after Premier's other suitor said it doesn't intend to make a higher offer for the Leeds-based group.
By The Newsroom
Published 18th Aug 2016, 18:38 BST
Updated 18th Aug 2016, 19:39 BST

The withdrawal of Swiss components distributor Daetwyler paves the way for US rival Avnet to take over the Raspberry Pi mini computer maker.​ ​

Last month Premier withdrew a recommendation for the Daetwyler cash offer of 165​p per share after Avnet’s bid of 185​p.​ ​Many analysts had expected Daetwyler to return with a higher offer, potentially sparking a bidding war.​ However, Daetwyler said that the terms of its previous offer were final and the offer will lapse on August 21.

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Avnet believes the deal will enable it to capture market share earlier in the design process.

Avnet said it was too early to say whether ​​the deal will involve job losses at Premier. However it was able to give more reassurances on job security than ​Daetwyler.

In its offer statement, Avnet said: “Avnet attaches great importance to the track record, skills and experience of the existing management and employees of Premier Farnell. The transaction will augment the capabilities of both Avnet and Premier Farnell and will offer attractive career opportunities for employees to progress.”

The US firm said Premier’s management team is a key part of the attractiveness of the deal and it intends to enter into discussions with senior management about staying with the combined group. Valerie Gooding is chairman of Premier Farnell.

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