Ingram Micro to Be Acquired by China’s HNA Group for $6B in Cash

Ingram Micro would be folded into HNA Group, a large conglomerate that counts Hainan Airlines as one of its subsidiaries.

IRVINE, Calif. – Ingram Micro, the wholesale networking and software distributor, agreed to be acquired by China’s Tianjin Tianhai Investment Co. for $38.90 a share in cash, or an equity value of $6 billion.

Ingram Micro, which also provides technology services, will become part of HNA Group, the largest stockholder of Tianjin Tianhai, the companies said Wednesday in a press release. The deal, representing a 39% premium to Ingram Micro’s 30-day average closing stock price, has been approved by both companies’ boards, according to the statement.

The purchase is further evidence of China’s determination to acquire overseas technology assets to boost its domestic capabilities and replace imports. China’s publicly traded firms are in the midst of their biggest-ever international shopping spree. The country’s listed companies have announced $23.8 billion of outbound deals so far this year, according to data compiled by Bloomberg.

After just 48 days of 2016, that’s already closing in on the record tally of $25.6 billion announced during the whole of last year, Bloomberg reported.

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HNA will keep Ingram Micro’s management in place and they will continue to run the company from its headquarters, located here. The two sides expect to complete the transaction in the second half of this year.

HNA is a group that has divisions in the aviation, tourism and logistic industries. Its holdings include 11 publicly traded companies. The group had revenue of $29 billion in 2015, according to the statement. Tianjin Tianhai, which is listed on the Shanghai Stock Exchange, is trying to transform itself from a marine shipping company into a more general logistics and supply chain management operation.

China International Capital Corp. Limited and Bravia Capital jointly acted as lead financial advisers to HNA Group. Weil, Gotshal & Manges LLP acted as HNA Group’s legal counsel. Morgan Stanley & Co. LLC acted as financial adviser to Ingram Micro and Davis Polk & Wardwell LLP acted as Ingram Micro’s legal counsel.

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