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PHOENIX — Avnet, Inc. (NYSE:AVT) announced today that it has acquired the operating assets of the electronic components distribution business of C.R.G. Electronics Ltd. (CRG), an Israeli company. CRG is a distributor of high quality PC products and electronic components serving the Israeli electronics industry. The transaction has already received regulatory approval.
Founded in 1989 by Mr. Ronny Cohen, CRG provides pre- and post-technical support engineers, marketing, sales and inventory logistics to over 300 customers in the networking/datacom, telecom, defense and industrial segments. For the calendar year 2011, the electronic components business of CRG generated revenue of approximately $23 million. The acquired business will become part of Avnet Israel, a business region of Avnet Electronics Marketing EMEA.
“The acquisition of CRG will strengthen our position in the design intensive Israeli high-tech market by adding complementary product lines and a highly reputable technical team,” said Patrick Zammit, president of Avnet Electronics Marketing EMEA. “CRG’s technical resources and customer service commitment will help us to further enhance our strategy of providing technical support to our Israeli customers at the point of design and support them with global fulfillment capability from manufacturing ramp through end of life.”
The investment is expected to be immediately accretive to earnings and supports Avnet’s return on capital goal of 12.5%.
I'd be interested to learn how the green regs are going to be policed. For instance, how do we know people are meeting recycling targets and not simply dumping the stuff in other parts of the world where the components then appear on the black market.
Flyingscot,
When you say people, you mean the general consumer or the suppliers?
-Susan
Bolaji,
These are great topics for this month. I like the focus very much.
-Susan
The rules and regulations about the environment are being introduced by government bodies globally and they are similarly implementing monitoring and enforcement actions that may also include fines or the ban of impacted components and equipment from that region.
The onus for compliance is on the suppliers of the components and the original equipment manufacturer (OEM) buyer. If regulators receive a complaint and if investigations show failure to comply, the seller and its suppliers will be penalized.
One more point about the dumping of the parts in other regions of the world. Many countries where old electronic equipment and other high-tech devices are currently shipped for disposal are introducing similar laws to protect their own environment and workers. What this means is that the regions where manufacturers can allow these equipment to be shipped for disposal are fewer today than 10 years ago.
India used to be one such spot but now they are much more closely monitoring these activities. The same is happening in India. We will be focusing on some of these over the next weeks in EBN Velocity.
This is the big question, Bolaji. When something should be called a waste. The definition of waste differs from the society to society and also upon the standard of living.
What one may call a waste may still have good utility for other, without any recylcing.
The food that is termed as waste in a 5 start hotel may contain enough quality food to fill many a empty stomachs of those hungry poor . So in India, there are NGOs who collect “waste” food from such high profile places and after ensuring that it is healty enough to eat, distribute it among the needy poor.
Similar middlemen are required for processing of “electronic waste”, the trusted middlemen who will judiciously decide what can be paased as “good” and what should be destroyed as the real waste.
@ prabhakar_deosthali You mean something like “One man's trash is another man's treasure?” Even in places where food waste is not collected to feed people, some people still gather it for compost. But many of us are so lazy about disposal that we just toss out everything — even those items that are marked for recycling.
Exactly Ariella!
The developed countries need to give perticular attention to this issue of judiciously deciding what is the real waste and what can be used for some other purpose without recycling it.
Yes, that would definitely improve efficient use of resources.