CHS Electronics Announces Acquisition of Western
Europe's Metrologie International
-- Purchase Consolidates CHS's No. 1 Position in Europe --
Metrologie's 1998 Sales Are Projected to Exceed $1 Billion --
CHS's 1998 European Pro Forma Sales Now Expected to Exceed $7
Billion -- Company's Position Is Strengthened in France, the U.K.
and Spain
MIAMI, April 20 /PRNewswire/ -- Further consolidating its position as Western Europe's
leading distributor of microcomputer products, CHS Electronics, Inc. (Nasdaq: CHSE - news)
today announced an agreement to acquire a majority interest in Metrologie International.
Metrologie, a public company traded on the Paris Bourse, distributes hardware and software in
France, the U.K. and Spain. Among the vendors whose products it distributes are
Compaq/Digital, Hewlett Packard, Microsoft, IBM and 3Com. Metrologie's customer base
includes more than 15,000 resellers. The company reported 1997 sales of $880 million and is
projecting 1998 sales of more than $1 billion.
CHS has entered into an agreement to buy from Apax Partners & Cie Ventures, s.a., and certain
other shareholders a majority of the 28.7 million outstanding Metrologie shares and options at a
price per share of 20 French francs (approximately $3.31). The purchase, subject to regulatory
approval, is expected to close by the end of May, after which CHS will make a tender offer for
the remaining outstanding shares at the same price per share. The cost of purchasing 100 percent
of Metrologie is estimated at $87.7 million, net of cash to be received by CHS in connection with
options the company will be purchasing.
Claudio Osorio, chairman and chief executive officer of CHS Electronics, said the acquisition of
Metrologie is expected to raise CHS's European pro forma sales to more than $7 billion and its
worldwide pro forma sales to approximately $9 billion this year. The acquisition reinforces the
company's number-one ranking among distributors in France and enhances its position as one of
the largest in the U.K. and Spain.
''This is an exciting agreement because of the size of Metrologie, the market share and customer
base Metrologie provides CHS, and the fact that Metrologie and CHS are complementary in a
number of important ways,'' Mr. Osorio said. ''Our two companies have relationships with
many of the same vendors, and Metrologie is ISO-9002-certified to perform configuration of
high-end platforms which will be strategically important as channel assembly takes on a greater
role in Europe in the future.''
Alain Fraiberger, chairman of Metrologie, said the joining of his company with CHS's growing
global distribution network comes at a perfect time and offers significant advantages to both
companies.
''During the past year, Metrologie has increased revenues by 40 percent while reducing
headcount and divesting unprofitable units,'' Mr. Fraiberger said. ''All this positions us to make
maximum use of the opportunities for improved competitiveness and financial performance that
joining CHS makes available to our company and its employees. The economies of scale made
possible by the acquisition are going to be considerable and important.''
Miami-based CHS Electronics is a leading international, full-service distributor of
microcomputers, peripherals and software products to more than 100,000 resellers (exclusive of
the Metrologie acquisition) in 42 countries in Europe, Latin America, Asia and Africa. Unlike
other computer wholesalers, CHS Electronics distributes a limited product line for a limited
number of leading computer manufacturers and does so only outside the United States. The
company believes that its ''focused distribution'' enables it to respond more quickly to
customers, provide better service, and reduce inventory and working capital requirements. CHS
believes it is currently the largest microcomputer distributor in Latin America and Europe,
number one in Germany and France and number two in Switzerland.
The above statements made by CHS Electronics related to pro forma 1998 sales, which are based
on current expectations, may differ materially from actual results. Among factors that could cause
actual results to differ materially are changes in business conditions, growth in the personal
computer industry and the general economy; competition; changes in product mix; and the risk
factors listed by CHS Electronics' reports filed with the Securities and Exchange Commission.
SOURCE: CHS Electronics, Inc. |
