Caixin
Dec 07, 2016 06:06 PM
M&A

HNA Group Closes $6 Billion Purchase of Ingram Micro

(Beijing) — Aviation and shipping giant HNA Group said it has completed its acquisition of computer parts distributor Ingram Micro Inc. in a $6 billion deal, one of China's largest high-tech purchases in the sensitive U.S. market.

HNA made the purchase through a subsidiary, Tianjin Tianhai Investment Co. Ltd., which paid $38.90 in cash for each Ingram Micro share, HNA said in a statement released late on Tuesday. The two sides first announced the deal in February.

"With its well-established supply chain, management expertise and broad portfolio of easy-to-use technology solutions, Ingram Micro exemplifies HNA Group's strategy of investing in companies with strong positions in growing markets in our core areas of focus," HNA CEO Adam Tan said in a statement.

Ingram Micro said in July it was submitting the deal to the Committee on Foreign Investment in the United States (CFIUS), the American agency that reviews such deals for national security considerations. U.S. politicians have expressed wariness about a growing number of Chinese acquisitions in the high-tech and financial sectors over the last two years.

Most recently, such concerns have overshadowed plans by a Chinese group to buy the Chicago Stock Exchange, and another to purchase chip maker Lattice Semiconductor. Last week, U.S. President Barack Obama also vetoed the pending sale of German chip maker Aixtron to a Chinese group over similar concerns.

Ingram Micro is less sensitive because the company isn't a high-tech manufacturer, but instead buys high-tech components from others and acts as a distributor and provider of supply-chain management services. The company entered China in 1999, and now has 25 distribution centers in the country.

Based in the popular tourist destination of Hainan Island in southern China, HNA has become one of China's most aggressive global investors over the last five years. Most of its purchases have been in the travel and tourism industry, including a plan announced in October to buy a 25 percent stake in U.S. hotel giant Hilton Worldwide Holdings Inc. in a deal valued at about $6.5 billion.

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