Platinum Equity has announced that it has entered into a definitive agreement to acquire Ingram Micro from HNA Technology, a part of the HNA Group, in a transaction value at USD 7.2 billion. The sale is expected to be completed by the first half of 2021, subject to HNA Technology shareholder and customary regulatory approvals.
Morgan Stanley and Goldman Sachs are acting as financial advisors, and Morgan Lewis as legal counsel, to Platinum Equity on the acquisition of Ingram Micro. Willkie Farr & Gallagher is providing financing legal counsel, and debt financing commitments have been obtained from J.P. Morgan, Bank of America and Morgan Stanley Senior Funding.
Davis Polk is providing legal counsel to HNA Technology on the sale of Ingram Micro and J.P. Morgan is acting as financial advisor in connection with the transaction.
Upon closing, Alain Monié will continue to lead Ingram Micro as chief executive officer, and the company will continue to be headquartered in Irvine, California.
Tom Gores, Platinum Equity Chairman and CEO, said: “Ingram Micro is an industry leader, one of the largest companies in the world and will be a cornerstone investment in our portfolio. We have the resources and the experience to help the company pursue an aggressive agenda of growth and transformation."
Jacob Kotzubei, Platinum Equity partner, said: “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. 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."
Monié said: “Platinum's sector expertise, global operating capabilities and financial resources make it the ideal partner. 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 has been a good partner for Ingram Micro, enabling us to continue to innovate and expand our global businesses. We look forward to the opportunity to accelerate this trajectory with Platinum."
Wang Duan, president of HNA Group North America, said: “We are pleased to have reached an agreement that delivers a strong return on HNA's investment while ensuring that Ingram Micro has a partner committed to investing in its future growth. 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."