Swiss electronics firm Daetwyler Holdings to acquire Leeds’ Premier Farnell for £792m

Premier Farnell, the Leeds-based electronics distributor, has agreed to acquire Swiss electronics firm Daetwyler Holdings for £792m.

Daetwyler, which has a market value £1.29bn, will pay 165p in cash for each Premier Farnell share. The shares of the Yorkshire company rose 50% once news of the takeover was announced.

The deal will see Datwyler will pay £615m for the entire share capital of Premier Farnell, but with the inclusion of the company’s debt and pension deficit, the deal is valued at £792m.

Premier Farnell, which is listed on the London Stock Exchange, is the maker of the low-cost mini computer, Raspberry Pi. Since launching in 2012, more than 8 million Pi computers have been sold.

Daetwyler has said that the acquisition would create a group with total revenues of $2.6bn.

Ulrich Graf, chairman of Daetwyler, said: “Premier Farnell and Dätwyler both have long and successful histories in high-service distribution for electronic components.

“By combining forces, we expect to significantly increase our competitiveness and extend our product range, facilitating a one-stop-shopping experience for our wide range of customers from a multitude of industries.”

In the past year, Premier had seen sales fall in key markets around the world. In February, the company sold engineering products business, Akron Bass, for $224.2m

Jos Opdeweegh, Premier Farnell’s chief executive, commented: “The sales trends of 2015/16 continued into the first quarter of this financial year, with strength in continental Europe and Asia Pacific and difficult trading conditions in North America and UK.

“I am pleased we have reached an agreement with Daetwyler on the terms of a recommended offer for Premier Farnell. I believe the combination of the two companies represents a strong strategic fit and is highly attractive for customers, shareholders and colleagues.”

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