Ingram Micro Acquired: CEO Memo to Employees

When Ingram Micro was acquired by Tianjin Tianhai for $6 billion today, Ingram CEO Alain Monié sent the following email to all employees. ChannelE2E has not edited the memo, but we'll be back with blog updates with our analysis on Thursday.

MEMO

All Ingram Micro Global Associates:

I am writing today to share a significant and exciting announcement about the future of our company. Today, we announced that Ingram Micro entered into a merger agreement to become a part of HNA Group, a Hainan-based global conglomerate and Tianjin Tianhai’s largest shareholder (via HNA Group’s subsidiaries). The merger values Ingram Micro at approximately $6.0 billion, or $38.90 per share. This merger will start an exciting next chapter for all Ingram Micro stakeholders, including our vendor and customer partners and you, our associates. With this merger, we will deliver near-term, compelling value to stockholders while also gaining the opportunity to accelerate the execution of our long-term strategy to deliver best-in-class solutions to our partners across the global IT ecosystem. Attached is the press release from today’s announcement along with FAQs to provide you with additional information.

HNA Group is a multinational conglomerate with in excess of $90 billion in assets encompassing aviation, airport management, financial services, real estate, retail, tourism, transportation and logistics. HNA Group has a long history of investing in multinational companies and partnering with leading, well run brands to support and accelerate management’s strategic initiatives. HNA Group’s recent investments include Zurich-based, Swissport International, the world’s largest provider of aviation ground and cargo handling services, and Avolon, a formerly NYSE-listed provider of aircraft leasing and lease management services, as well as U.S.-based companies such as Red Lion Hotels. HNA Group recognizes the outstanding value we have created at Ingram Micro, as well as the significant potential of our business.

HNA Group has a successful track record of supporting and empowering the existing management teams of the companies that join their group to ensure stability and continuity of the business. HNA Group is confident that as part of its family of companies, Ingram Micro has the opportunity to accelerate growth and achieve even greater success. In addition, we strongly believe that HNA Group’s pillars of focus are well aligned with our core values, including a commitment to integrity, performance and innovation.

Thanks to your contributions, we have made significant progress over the past few years toward our strategic and financial objectives. While we’ve taken tremendous steps forward, we are far from finished in the Ingram Micro success story. In fact, the rest of the management team and I see more opportunity ahead than ever before. This is a key reason why we are excited about joining HNA Group as it helps us in the pursuit of our strategy and goals, which do not change, except we can get there faster!

Most importantly, HNA Group has assured us that all local country operations and lines of business will continue unaffected as a result of this merger, with our corporate headquarters remaining in Irvine, California.

I will continue to lead the company as CEO and HNA Group has assured us that Ingram Micro will continue to operate in the same manner with our management and associates remaining in place across all operations, serving the same vendor and customer partners as before. As a part of HNA Group, Ingram Micro will benefit from being part of a larger organization that has complementary logistics capabilities and a significant presence in China and other emerging markets that we believe will benefit the business objectives of our vendor and customer partners. Ingram Micro will also have added flexibility and resources as a part of HNA Group to accelerate our strategy, including organic investment and M&A. We view this as an exciting opportunity to continue to innovate and invest in a future that lies beyond the next quarter.

I realize this news is unexpected, and I am sure you are all wondering what this means for each of you. I would like to assure you that it is business as usual at Ingram Micro and very little, if anything, is expected to change as a result of this merger. In fact, HNA Group has assured us that very few Ingram Micro positions will be impacted by this merger. Our brand, strategy, purpose and values remain unchanged. HNA Group has assured us that they are committed to maintaining the leadership and the core values that have made Ingram Micro a trusted partner, an industry leader and a great place to work.

Until the transaction is completed, which we expect will occur in the second half of 2016 subject to stockholder approval by both Tianjin Tianhai and Ingram Micro and customary regulatory approvals, Ingram Micro and HNA Group will continue to operate as separate companies. We should all remain focused on executing on our 2016 business plans and goals and providing our vendor and customer partners with the superior experience and solutions they have come to expect from us.

I recognize that you will have many questions about this announcement. As an immediate next step, I look forward to further discussing this with many of you at our Town Hall Meeting today at 3:00 PM PT. We will be recording the meeting and will send out a link to the video replay as soon as possible. You may also access an overview of HNA Group and a presentation covering the merger in the investor relations section of our website.

As is typical in these situations, you may receive inquiries from external parties and it’s important that we speak with one voice. Please do not attempt to respond on your own, but rather forward any customer or vendor inquiries to your head of HR or to your supervisor and any investor or the media inquiries to Damon Wright at (714) 382-5013 or [email protected].

This is an important next chapter for Ingram Micro and there is much more we can accomplish together to position Ingram Micro for long-term success. Thank you for your dedication and support. I am incredibly proud of the company that we have built and am excited about our future with HNA Group.

Signature

Alain Monié

ChannelE2E Observation: Here endith the memo.

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