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Table of Contents
Foreign Operations
As noted in the operating group discussions, Avnet has significant operations in all three major economic
regions of the world: the Americas, EMEA, and Asia /Pacific. The percentage of Avnet’s consolidated sales by
region is presented in the following table:
Avnet’s foreign operations are subject to a variety of risks. These risks are discussed further under Risk Factors
in Item 1A and under Quantitative and Qualitative Disclosures About Market Risk in Item 7A of this Report.
Additionally, the specific translation impacts of foreign currency fluctuations, most notably the Euro, on the
Company’s consolidated financial statements are further discussed in Management’s Discussion and Analysis of
Financial Condition and Results of Operations
in Item 7 of this Report.
Acquisitions
Avnet has historically pursued a strategic acquisition program to grow its geographic and market coverage in
world markets for electronic components and computer products. This program was a significant factor in Avnet
becoming one of the largest industrial distributors of such products worldwide. Avnet expects to continue to pursue
strategic acquisitions as part of its overall growth strategy, with its focus likely directed at smaller targets in markets
where the Company is seeking to expand its market presence, increase its scale and scope and / or increase its
product or service offerings.
During fiscal 2008 and the first month of fiscal 2009, the Company completed the following acquisitions:
Major Products
One of Avnet’s competitive strengths is the breadth and quality of the suppliers whose products it distributes.
During fiscal 2008, IBM products accounted for approximately 14% of the Company’s consolidated sales, and was
6
Percentage of Sales
for Fiscal Year
Region
2008
2007
2006
Americas
48
%
50
%
51
%
EMEA
33
31
31
Asia/Pac
19
19
18
100
%
100
%
100
%
Approximate
Operating
Annual
Acquired Business
Group
Region
Revenue(1)
Acquisition Date
Flint Distribution Ltd.
EM
EMEA
$40 million
July 5, 2007
Division of Magirus Group
TS
EMEA
$500 million
October 6, 2007
Betronik GmbH
EM
EMEA
$40 million
October 31, 2007
ChannelWorx
TS
Asia/Pac
$30 million
October 31, 2007
Division of Acal plc Ltd.
TS
EMEA
$200 million
December 17, 2007
YEL Electronics Hong Kong Ltd.
EM
Asia/Pac
$200 million
December 31, 2007
Azzurri Technology
EM
EMEA
$100 million
March 31, 2008
Horizon Technology Group plc
TS
EMEA
$400 million
June 30, 2008 (FY09)
Source Electronics Corporation
EM
Americas
$82 million
June 30, 2008 (FY09)
Ontrack Solutions Pvt. Ltd.
TS
Asia/Pac
$13 million
July 31, 2008 (FY09)
(1)
Represents the approximate annual revenue for the acquired businesses’ most recent fiscal year end prior to
acquisition by Avnet.