Santa Ana-based Ingram Micro Inc. said it plans to buy parts of Hollywood, Fla.-based Avad LLC in a bid to tap the home electronics market.
Ingram, the world’s biggest technology products distributor, said it will pay $120 million to buy Avad. It will pay another $80 million in the next three years if sales and profit targets are met.
Avad has 280 workers and posted sales of $200 million last year. It serves about 8,000 dealers through 28 facilities.
Avad is an alliance of 12 companies that share showrooms, distribution centers and training operations. Companies that use its facilites include electronics makers Fujitsu, Bose, Sharp, Samsung, Niles and Lutron.
“This acquisition accelerates our consumer electronics initiative and provides another key platform for growth,” said Ingram Chief Executive Greg Spierkel.
Last year Ingram, long a powerhouse in computer gear, launched a consumer electronics division to tap the growing market for high-end TVs and other home entertainment products.
The Avad deal is expected to close by the end of July. Ingram said it will boost earnings as early as this year.
Ingram said it is not picking up Avad’s cash, long-term debt or other money owed in the deal.
