Ingram Micro is being acquired by Platinum Equity HNA Group in a $7.2 billion deal.
HNA looking to divest itself of some of its foreign investments to refocus on the core business. The Platinum Equity deal is expected to complete in the first half of 2021, once it gets the nod of HNA shareholders and regulatory approval.
Other than that it looks like business as normal. Ingram Micro CEO Alain Monié stays in his job and the business remains in Irvine, California.
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,” he added.
Ingram Micro would have more cash in the future but HNA had been a good partner, giving the business a chance to expand its business geographically.
HNA acquired Ingram Micro in February 2016 for $6 billion, at a time when the Chinese firm was keen on expanding its operations through making a series of major foreign investments. That has changed in the past year as the business pulls back on some of that activity.