Acquirer: Tianjin Tianhai Investment Company, Ltd. (China)/HNA Group (China)
Acquired: Ingram Micro, Inc. (U.S.)
Value: US$6 billion
Industry: Logistics; Technology Services
On November 1, 2016, U.S. based Ingram Micro, Inc., announced that its pending US$6 billion acquisition by Tianjin Tianhai Investment Company Ltd. has been cleared by the Committee on Foreign Investment in the United States (CFIUS). (See Ingram Micro, Form 8-K, Nov. 1, 2016, SEC Filing; Ingram Micro Press Release, Ingram Micro and Tianjin Tianhai Receive Clearance From Committee on Foreign Investment in the United States to Proceed With Proposed Acquisition, Nov. 1, 2016.) According to the Nov. 1, 2016 SEC filing and the press release, the merger remains subject to approval from China’s State Administration of Foreign Exchange. The parties expect the transaction to close in 2016, whereby Ingram Micro will become a part of HNA Group, the largest stockholder of Tianjin Tianhai. (See Ingram Micro Press Release.)
Posted on July 26, 2016
Status: Upcoming/New Filing
In February 2016, Tianjin Tianhai Investment Company., Ltd. (“Tianjin Tianhai”), announced a $6 billion acquisition of Ingram Micro, Inc., an Irvine California technology solutions, mobility, cloud, and supply chain solutions business. Tianjin Tianhai is a Chinese publicly listed company shipping and logistics company. It is a member of the HNA Group, a China-based Fortune Global 500 enterprise group and a leader in aviation, tourism and logistics.
According to a press release issued by Ingram Micro Inc. on July 21, 2016, the parties have consulted with the Committee on Foreign Investment in the United States (CFIUS) and, following the consultation, “have elected to submit a joint voluntary notice to the Committee, which will be filed in due course.” The parties are expecting to close in the second half of 2016.
Initially, Tianjin Tianhai and Ingram Micro opted not to make the voluntary CFIUS filing, stating that they considered the distribution services offered by Ingram Micro to be outside the scope of national security concerns covered by CFIUS. Although the parties initially took this approach, news reports speculated that a filing would ultimately be required as Ingram has some government contracts or Ingram distributes IT security and encryption solutions.