Avnet has purchased the assets of Sunrise Technology from its owner and chairman, Cho Tung Wong, in a cash transaction along with shares of two related businesses, Shanghai Logistic and ChinaTronic Technology.
The three businesses, which will retain their respective company names, will join existing Avnet resources in the region, to form Avnet’s new Hong Kong/China business unit.
The existing management team of Sunrise, including Wong and Tsang, will remain with the company and take on the expanded responsibility of running the overall operations of Avnet Electronics Marketing (EM) in Hong Kong and China. They will report to Avnet EM Asia’s president, Harley Feldberg.
China is a very high priority and key strategic focus, said Brian Hilton, president of Avnet Electronics Marketing/Global. The acquisition of Sunrise is integral to our success in this region, which is on course to become the world’s second largest market for semiconductors by 2010.
Sunrise reported revenues of approximately US$230 million for the fiscal year ending 31 March 2001. The acquisition is expected to be slightly accretive to earnings, effective immediately.
With its headquarters in Hong Kong, Sunrise also operates a warehouse in Pudong, Shanghai, one of China’s 14 waigaoqiao free-trade zones.
