Avnet 2002 Annual Report Download - page 18

The Company completed the following Ñfteen acquisitions in 2001 and 2000.
Reported Sales
Acquisition Date Acquired Company Base of Operations (Millions)(A)
June 2001 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Kent Electronics Corporation North America $ 942
May 2001ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Sunrise Technology Ltd. China 230
February 2001 ÏÏÏÏÏÏÏÏÏÏÏÏÏ RDT Technologies Ltd. Israel 90
October 2000ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ VEBA Electronics Group Germany 1,800
July 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Savoir Technology Group, Inc. North America 767
June 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ SEI Nordstar Netherlands 35
January 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Eurotronics/SEI Netherlands 550
January 2000 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Cosco Electronics/Jung Kwang Korea 30
November 1999ÏÏÏÏÏÏÏÏÏÏÏÏ PCD Italia S.r.l. and Matica S.p.A. Italy 120
November 1999ÏÏÏÏÏÏÏÏÏÏÏÏ Orange Coast Companies(B) North America 19
October 1999ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Marshall Industries North America 1,700
October 1999ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ SEI Macro Group United Kingdom 200
August 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Integrand Solutions Australia 49
June 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Advacom, Inc.(B) North America 112
April 1999 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Sabre-Data, Inc.(B) North America 37
(A) Represents the acquired company's approximate reported sales in its most recent Ñscal year prior to its
acquisition by Avnet.
(B) The acquisitions of the Orange Coast Companies, Advacom, Inc. and Sabre-Data, Inc. were completed
by Kent Electronics prior to its acquisition by Avnet. As the Kent Electronics acquisition was accounted
for as a ""pooling-of-interests'' and based upon the nature of the Ñnancial statements combined for
reporting purposes (see Note 2 to the Consolidated Financial Statements appearing in Item 14 of this
Report), all three of these acquisitions are considered to have been completed during Avnet's Ñscal 2000.
During 2001 and 2000, the Company acquired a number of businesses that had a substantial positive
impact on the Company. Below is a discussion of the Company's more signiÑcant acquisitions (those
acquisitions wherein the acquired company had sales in excess of $150 million in its most recent Ñscal year
prior to acquisition) consummated in the past three years. With the exception of the acquisition of Kent
Electronics Corporation (""Kent''), all of the acquisitions discussed below were accounted for using the
purchase method of accounting.
On June 8, 2001, Avnet completed its acquisition of Kent, a specialty distributor and network integrator,
following approval of the Amended and Restated Merger Agreement and Plan of Merger dated as of
March 21, 2001 (the ""Merger Agreement'') by Avnet and Kent shareholders on June 6, 2001. Pursuant to the
Merger Agreement, Kent was merged into Avnet and its separate existence ceased. Kent shareholders
received 0.87 of a share of Avnet common stock for each share of Kent common stock held, with cash paid in
lieu of any fractional shares based on $25.84 per Avnet share. Avnet issued approximately 25.3 million shares
of its common stock to Kent shareholders and an additional 1.7 million shares were reserved for issuance upon
the exercise of outstanding warrants and stock options assumed in the transaction.
The accompanying consolidated Ñnancial statements and notes for years prior to 2002 have been restated
to reÖect the acquisition of Kent, which has been accounted for as a ""pooling-of-interests.'' The periods
combined are more fully discussed in Note 2 to the consolidated Ñnancial statements appearing in Item 14 of
this Report. The combination of prior periods does not give eÅect to the synergies that the Company has
realized and expects to continue to realize from the combined operations subsequent to the acquisition. As
discussed in Item 7 of this Report and in the notes to the consolidated Ñnancial statements, the Company
recorded certain special charges in the fourth quarters of 2002 and 2001, a signiÑcant portion of which resulted
from the Kent acquisition being accounted for as a ""pooling-of-interests.'' Thus, these charges were recorded
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