Richardson Electronics, Ltd. (NASDAQ: RELL) today announced the signing of a definitive agreement to sell its RF, Wireless and Power Division (RFPD) and certain other assets to Arrow Electronics, Inc. (NYSE: ARW) for $210 million in cash.
“The decision to divest the RFPD division was not an easy one; however, this transaction provides an excellent return on our investment”
RFPD is a leading global provider of engineered solutions and a global distributor of electronic components to the RF and wireless communications market and the industrial power conversion market. RFPD designs, manufactures and distributes discrete devices, components, and assemblies used in RF and wireless infrastructure communications networks, digital broadcasting, defense applications and power conversion. RFPD generated revenue of $356 million during fiscal year 2010.
Arrow intends to operate RFPD, which will be called “Richardson RFPD,” as a separate business unit of Arrow Electronics. Richardson RFPD headquarters will remain in LaFox, Illinois.
“The decision to divest the RFPD division was not an easy one; however, this transaction provides an excellent return on our investment,” said Edward J. Richardson, chairman and CEO of Richardson Electronics, Ltd.
The transaction is subject to the approval of shareholders of Richardson Electronics as well as customary closing conditions and regulatory approvals. The companies expect the transaction to close in early 2011.
