Private-Equity Firm Said to Be In Talks to Purchase Ingram Micro

On December 21, 2018, Reuters reported that China’s HNA Group, which owns Ingram Micro, is discussing the possible sale of Ingram Micro to private-equity firm Apollo Global Management. The HNA Chinese conglomerate is said to be scaling back its operations. Ingram Micro, which is based in Irvine, California, is a distributor of IT products,  as well as managed print services.

HNA hopes to sell the U.S. electronics distributor for $7.5 billion, including $1.5 billion in debt, a source told Reuters, adding that it’s currently in talks with Apollo after rebuffing an earlier offer that it considered too low.

HNA has already pushed ahead with asset sales that have so far included real estate and stakes in hotels groups.

Apollo declined to comment and Ingram was not immediately available for comment. HNA was not available for comment outside normal business hours in China.

The Wall Street Journal first reported the talks here.

Earlier this month, Reuters reported that the China Development Bank was leading a team to supervise HNA’s asset disposals “as the heavily indebted conglomerate unwinds a $50 billion acquisition spree and scales back to a point that will leave it holding only core assets.”

HNA said in September that it had $3.55 billion of outstanding debt from the purchase of the firm, of which $350 million was due for payment this year.

Back in May 2018, Reuters had also reported that Appollo may have been interested in purchasing Xerox (see here for more).

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