Premier Farnell to combine 3 regional businesses
June 12 (Reuters) - Premier Farnell Plc, a distributor of small electronics and electronic parts, said it would combine its marketing and distribution businesses in the Americas, Europe and Asia Pacific regions to boost performance.
The company said current trading was in line with the reported performance for the first three months of the year, when sales per day grew 2 percent.
Premier Farnell, which sells about half a million products ranging from batteries to CCTV cameras in more than 100 countries through its websites including Newark, Farnell and element 14, said it expected the cost of reorganisation to be about 8 million pounds ($13 million).
"The simplified global structure will deliver operating efficiencies and enable the group to benefit from economies of scale," Premier Farnell said in a statement.
The company, which started out as a radio parts seller in 1939, said the reorganisation would see annual cost savings of 6 million to 8 million pounds, with a minimal boost to the current financial year. The full benefits are expected in 2016.
The marketing and distribution business accounted for about 80 percent of Premier's total turnover last year.
Shares in the company were up 0.86 percent at 210.2 pence at 0729 GMT on Thursday on the London Stock Exchange.
($1 = 0.5956 British Pounds) (Reporting by Noor Zainab Hussain in Bangalore; Editing by Gopakumar Warrier)