Electrocomponents plc, a global omni-channel solutions partner for industrial customers and suppliers, has announced that it has reached an agreement to acquire Synovos, a leading player in integrated supply solutions in the Americas, for a total consideration of $145 million on a debt-free, cash-free basis. The Synovos acquisition is subject to customary closing conditions, including US anti-trust, and is expected to complete in Q1 calendar year 2021.
Electrocomponents has the building blocks in place and is accelerating the execution of its growth strategy from strong foundations. There is continued momentum across the business as customer and industry trends fast track towards the Group’s proposition.
Synovos will accelerate delivery of a global integrated supply proposition and significantly strengthen the Americas business:
• Synovos and IESA create a global integrated supply proposition in the growing market for value-added solutions
• Synovos is a leading player in integrated supply solutions: managing procurement spend, inventory, strategic sourcing
• Strong position in North America with blue-chip customers in resilient sectors e.g. pharmaceuticals, consumer health
• Targeting revenue synergies from enhanced Americas customer proposition of RS PRO, Allied and Synovos
Lindsley Ruth, Electrocomponents’ Chief Executive Officer, commented: “Synovos is a very good business, aligned to our strategy of selectively adding high-quality, value-creating bolt-on acquisitions to the Group. Synovos enables us to expand our value-added solutions offer in the Americas, significantly enhancing our proposition for corporate customers. It is an excellent fit with our existing IESA business and will increase our ability to support clients in managing their procurement, inventory and maintenance needs globally.
“In the past five years we have transformed Electrocomponents into a strong, focused, customer-centric organisation on a clear growth trajectory. We are now taking the business to the next level. Whilst driving organic growth will always be our primary focus, Synovos demonstrates how our disciplined approach to acquisitions can bring valuable capabilities and products into the Group.”