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Ingram Micro’s Monié Sees Organic, M&A Growth

Alain Monié, chief executive of wholesale technology distributor Ingram Micro in Irvine, has given some insights into the company’s way forward under its new U.S. owner, Platinum Equity of Los Angeles.

That includes further growth in the company’s cloud business as well as its e-commerce logistics and fulfillment business.

“We have always grown strategically and thoughtfully, whether it be organically or through acquisition, and we will continue to pick our spots,” Monié told the Business Journal after the $7.2 billion sale by HNA Group of China was announced earlier this month (for more, see the Dec. 14 print edition of the Business Journal).

Monié added: “This year, we’ve seen particularly robust growth in markets supporting work- and learn-from-home solutions. Our e-commerce logistics and fulfillment business has also been growing strongly, given the sustained growth of on-line shopping and our cloud business continues to grow exponentially.”

“One of the most exciting aspects of partnering with Platinum Equity is they want us to accelerate our growth and will give us access to their substantial resources to do so,” he said.

Ingram Micro is already Orange County’s largest company by revenue, with 2019 sales of $47.2 billion. It is the world’s largest wholesale distributor of computer and technology products, shipping software and other tech items across the world.

Ingram Micro offers technology and supply chain services that are used by many of the world’s largest technology companies such as Apple Inc., Cisco Systems Inc., Hewlett-Packard Co., IBM Corp., Microsoft Corp. and Samsung Electronics Co. Ltd.

CEO’s Future Thoughts

Some other views from Monié as he looks to the future:

• “We are confident joining Platinum Equity will further strengthen our capabilities to support our business objectives, as they are ready to commit substantial resources to provide us with added flexibility to scale our services and solutions even faster, both organically and through M&A.”

• “They want us to continue to build on our strong competitive advantage in the cloud and hasten our digital transformation to make doing business with Ingram Micro even easier.”

• “They want us to broaden our unmatched geographic reach further, while accelerating the expansion of our solutions and services portfolio, particularly for high value Technology Solutions [TS] markets. And they want to see our Commerce & Lifecycle Services businesses penetrate new industries and verticals. Additionally, Platinum Equity has significant expertise in operations and will help us speed the launch of our next generation operations centers, broaden our shared services focus, and extend our centers of excellence to underserved markets.”

• “I believe we have an excellent opportunity to continue to grow in our strategic markets”

Platinum Benefits

The company had said a year ago that Monié would spend more time on Ingram’s growing cloud and Commerce & Lifecycle Services units to increase, areas with greater potential for profitability.

Damon Wright, Ingram Micro’s vice president for corporate communication, told the Business Journal that the company’s cloud business “is growing exponentially—our cloud marketplace now exceeds 10M active seats—albeit from a much lower revenue level than our core Technology Solutions distribution business, which is north of $40 billion.”

“But we’re not seeing the growth of cloud solutions cannibalize the opportunity to continue to grow the TS business.  If anything, we continue to see complementary opportunities calling for hybrid solutions, with TS solutions/services being bundled with cloud solutions/services,” he added.

The company reported third-quarter net sales of $12.1 billion, up 2.1% from the same period a year earlier.

The impending sale, at a 20% premium over the price that HNA paid four years ago, is expected to be completed by the first half of 2021.

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Kevin Costelloe
Kevin Costelloe
Tech reporter at Orange County Business Journal
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