Arrow Electronics, Inc. (ARW), Tuesday said it has signed a deal to acquire A.E. Petsche Co., a specialty wire, cable and harness management solutions provider to aerospace and defense markets. The acquisition is expected to close by the end of 2009 and is indicated to be accretive to earnings by $0.10 or $0.12 in 2010.
Commenting on the acquisition, Peter Kong, president of Arrow Global Components said, "With this acquisition, A.E. Petsche will expand Arrow's product offering in specialty wire and cable and will greatly increase our presence in the aerospace and defense markets."
Arrow Electronics believes the strategic transaction would add to its customer base and enable a variety of cross-selling opportunities with existing business as well as other emerging markets.
Headquartered in Arlington, Texas, A.E. Petsche distributes its products in the United States, Canada, Mexico, the United Kingdom, France, and Belgium, with total sales of around $220 million in 2008.
Glenn Davidson, chief executive officer of A.E. Petsche said, "As a result of this transaction, both Arrow and A.E. Petsche will strengthen their product portfolio in the aerospace and defense markets."
ARW is currently trading at $27.28, down $0.49 or 1.76%, on a volume of 0.24 million shares.
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