Arrow Acquires Nordic Company

Electronic News, April 17, 2000 by Heidi Elliott

Distribution giant Arrow Electronics Inc. last week announced it would acquire a distributor in the Nordic region with estimated sales of $150 million.

Melville, N.Y.-based Arrow has agreed to acquire Jakob Hatteland Electronic AS (JHE), a leading distributor of electronic components in the Nordic region, with headquarters in Nedre Vats, Norway. Terms of the deal were not announced. The acquisition is expected to close in about three months.

JHE serves the entire Nordic region and carries products from suppliers like Infineon, Philips, NEC, and Analog Devices. In announcing the deal, Stephen Kaufman, Arrow chairman and chief executive officer, said, "The Arrow and JHE businesses have very complementary strategies and maximizing the unique strengths of both organizations will benefit everyone involved."

This acquisition complements the company's current business because JHE serves the traditional smaller customer base in the region, noted Robert Klatell, executive vice president, while Arrow's existing distribution business serves the large OEM and contract manufacturing customer segments. "We have a strong position in the Nordic companies. This enhances our position," he said in an interview last week.

Arrow has used acquisition as a growth model since the 1980s. In the past two decades, the company has made more than 40 acquisitions around the globe and now has offices in 35 countries. The company last year recorded sales of $9.3 billion, with roughly 25 percent of that figure coming from Europe.

"This merger brings one of Europe's most widely respected distributors to the Arrow family of companies and enhances our preeminent position in the Nordic region," said Kaufman. "One of the things that attracted us to JHE is its engineering strength and focus on demand-creation," added Francis M. Scricco, Arrow president.

"The combination of JHE and Arrow is the perfect match," said Jakob Hatteland, chairman and founder of JHE. "The combined strengths of these two organizations will provide the optimal solution for our customers and suppliers."