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Technology Stocks : HS - CHS Electronics -- Ignore unavailable to you. Want to Upgrade?

To: Lazlo Pierce who wrote (620)	5/20/1998 3:12:00 PM
From: Chris Baker	Read Replies (1) \| Respond to of 1494

Proforma 1998 sales $7.5 billion in Europe as a whole. Cannot figure out how they figured 7.5 billion in Europe, but here is the press release. MIAMI, May 20 /PRNewswire/ -- Vaulting into the number one position among microcomputer distributors in Italy and further strengthening its number one market position in Europe, CHS Electronics, Inc. (Nasdaq: CHSE) today announced agreements to acquire three companies in Italy, Germany and The Netherlands with combined sales that are expected to total $500 million in 1998. The three companies are: * Raphael Informatika Group, the largest microcomputer products distributor in Italy and the company with the only approved Hewlett-Packard channel assembly program in that country. It distributes to 9,000 resellers and had 1997 sales of $160 million. * Micro Computer Dos GmbH, which is based in Germany and distributes in a region centered around Cologne to a 6,000-resellers customer base different than the one currently served by CHS in that region. It derived a substantial portion of its $143 million in 1997 sales from private-label business. * Micro Computer Dos B.V., a major distributor in The Netherlands, had 1997 sales of $114 million, serves 2,500 resellers, and also does substantial business in private-label products. CHS Electronics, a leading international distributor of microcomputer products, is to purchase all of Raphael Informatika and Micro Computer Dos GmbH and a majority interest in Micro Computer Dos B.V. All three acquisitions are expected to close within 90 days, with some of the price to be based on future performance and paid in CHS shares and cash. Claudio Osorio, chairman and chief executive officer of CHS Electronics, said these latest acquisitions are important to the company in several ways. They are expected to increase CHS's pro forma 1998 sales to $255 million in The Netherlands, $270 million in Italy, $1.75 billion in Germany, and $7.5 billion in Europe as a whole. "Until now, Italy and The Netherlands have been the only major European markets in which CHS has not had a presence," Mr. Osorio said. "Our only Italian and Netherlands operations were those acquired as part of Karma International S.A. last August. Raphael Informatika not only gives us a strong market position in Italy but makes us the leader there. It distributes the products of key vendors including Hewlett-Packard, Microsoft, 3Com and Compaq. Its ISO 9000-certified build-to-order channel assembly capabilities fit in with our plans to broaden our operations to include more assembly in Europe and elsewhere." He said the Micro Computer Dos companies also bring a number of important advantages. The two companies are similar in their operations and product lines to Frank & Walter, a large German computer distributor acquired by CHS effective January, 1997. They distribute many of the same products as Frank & Walter but in regions of Germany where Frank & Walter has no local offices, so that their acquisition will strengthen CHS's position in those regions. "Also important is their experience and ability to generate increased sales in the private-label business," Mr. Osorio said. "This will be valuable to us as we execute our strategy of making private-label sales a more important element in the revenues of CHS as a whole." Miami-based CHS Electronics, ranked number 320 on the latest Fortune 500 list of the largest U.S.-based industrial corporations, is a leading international, full-service distributor of microcomputers, peripherals and software products to more than 110,000 resellers 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 the largest microcomputer distributor in Latin America and Europe. The above statements regarding pro forma 1998 sales made by CHS Electronics are based on current expectations and 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.