Platinum Equity has entered into a definitive agreement to acquire Ingram Micro, the world’s largest provider of technology logistics services and solutions, from HNA Technology Co., in a transaction valued at $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.
Tom Gores (pictured), chairman and CEO, Platinum Equity, commented, “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.”
Ingram Micro was founded in 1979 and is headquartered in Irvine, California. It generated more than $47 billion in revenue for fiscal year 2019 and has more than 35,000 employees and operations in 60 countries. The company serves more than 250,000 customers and partners with over 2,000 vendors. Ingram Micro says it enables business partners to operate more efficiently and successfully in the markets they serve through its vast global infrastructure and focus on cloud, mobility, technology lifecycle, supply chain and technology solutions
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.
Monié added, “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.”
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.
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.