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Article: Brightpoint picks up CellStar assets; U.S., Latin American operations bought for $88M.(News)
- Article from:
- RCR Wireless News
- Article date:
- December 25, 2006
CopyrightCOPYRIGHT 2006 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Colin Gibbs
Brightpoint Inc. will shell out $88 million in cash to purchase a major piece of crippled competitor CellStar Corp.
The Plainfield, Ind.-based logistics and distribution giant announced plans to buy CellStar's 500-employee U.S. operations, including its Miami headquarters, and the bulk of its Latin American business. The move is expected to add $450 million in revenues and will be "slightly accretive" to Brightpoint's earnings per share in the first year following the deal's close, the company predicted.
"We think it's a great opportunity," Brightpoint President Mark Howell said of the acquisition. "(Latin America) is a ...