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Deals

Platinum Equity to buy Ingram Micro from HNA Group in $7.2 billion deal

(Reuters) -U.S. private equity firm Platinum Equity said on Wednesday it would buy electronics distributor Ingram Micro Inc from a unit of Chinese aviation and shipping conglomerate HNA Group in a $7.2 billion deal.

The deal comes as the once high-flying HNA Group, which owns the Hainan Airlines, sheds assets under a restructuring program to resolve liquidity risks stemming from years of aggressive acquisitions abroad.

In September, the cash-strapped group’s chairman was barred from taking flights and high-speed trains and going on vacations due to its failure to pay a court-ordered $5,300 in a lawsuit.

HNA acquired Ingram, which distributes products ranging from Apple Inc’s iPhones to Cisco’s network equipment, in 2016 in a $6 billion deal.

The sale will help HNA Technology, a listed arm of the group, to repay the principal and interest on M&A loans and related debt, as well as to reduce expenses and ease liquidity pressure, the unit said in a regulatory filing with the Shanghai Stock Exchange.

The deal will not cause any changes in the equity structure of HNA Technology, or any changes in its ownership, it added.

Chief Executive Officer Alain Monié will continue to lead Ingram after the sale, which is expected to be completed by the first half of 2021, Platinum said.

Founded in 1995 and headquartered in Los Angeles, Platinum has invested in diverse industries including technology, healthcare, entertainment, manufacturing and natural resources.

Ingram, which has 35,000 employees and operates in 60 countries, reported over $47 billion in annual sales for its fiscal year 2019.

Morgan Stanley and Goldman Sachs are financial advisers to Platinum Equity, while J.P. Morgan is advising Ingram. (refini.tv/2VUKR6m)

Reporting by Munsif Vengattil and Shreyasee Raj in Bengaluru, Twinnie Siu in Hong Kong; Editing by Sriraj Kalluvila

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