The transaction is slated to be completed during the second calendar quarter of 2003 and will be financed through Jaco's existing bank credit facilities, said Joel Girsky, chairman and chief executive officer of the Hauppage, N.Y.-based distributor, in a statement. It is anticipated that approximately $5.6 million of the purchase will be paid in cash.

Reptron Distribution is a division of Reptron Electronics Inc., Tampa, Fla. Under the terms of the pact, Jaco will acquire Reptron Distribution's customer lists, inventory and other assets.

"The electronics distribution operations of Reptron Distribution are an excellent, complementary addition to Jaco's existing core distribution operations," Girsky said. "This acquisition significantly strengthens our position in our core electronics distribution segment by adding sales volume, an exciting line card of new products not yet carried by Jaco and Reptron's nearly 2,000 customers."

Reptron Distribution contributed $109 million in sales to its parent company in 2002. The division reported an operating loss of $17.3 million in 2002, approximately 95% of Reptron's total operating loss. Reptron plans to release its first quarter results on May 20. The company will hold a conference call with analysts on May 21.

"The sale of our component distribution business is an important part of our strategy to restore profitable operating results for Reptron Electronics," said Paul Plante, the company's president and chief operating officer, in a statement.

Reptron Electronics continues to operate its EMS division, Reptron Manufacturing Services, and systems integration business, Reptron Display and System Integration.

By: DocMemory
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