Avnet beefs up Asia operations with YEL Electronics HK acquisition

United States-based Avnet, a major electronics component distributor, last week made its 10th acquisition in Asia, buying into specialist Asian distributor YEL Electronics Hong Kong to tap greater China's medium-sized electronics manufacturing segment.

While neither party disclosed the financial terms of the transaction, analyst William Stein of Credit Suisse Equity Research put the acquisition price at about US$67 million.

Established in 1992 and headquartered in Hung Hom, YEL is described by Avnet as a top-five distributor of so-called interconnect, passive and electromechanical (IP&E) components and limited semiconductor products in the region. It posted revenue of US$200 million last year.

Stephen Wong Kin-hung, president of Avnet Electronics Marketing Asia, said YEL would become a division within Avnet dedicated to IP&E components distribution.

IP&E components include the resistors, capacitors and connectors found inside electronics products, ranging from mobile phones and personal computers to digital televisions and refrigerators.

YEL serves about 2,000 customers in eight Asian markets, representing more than 30 franchised suppliers. Avnet has annual revenue of about US$16 billion and has been active in the region since 1995.