Synnex Canada To Acquire Consumer Electronics Distributor

Under the deal, announced Tuesday, Toronto-based Synnex Canada will pay $45 million (Can.) for RGC's assets, including about $10 million of debt assumption. The transaction is expected to close at the end of April, after which RGC will operate under the Synnex Canada name.

"The acquisition of RGC will allow Synnex Canada to rapidly accelerate its consumer-electronics distribution focus," Synnex President and CEO Robert Huang said in a statement. "We see consumer electronics as a growth area for Synnex, and we expect this transaction to enable new opportunities throughout North America for our consumer-electronics distribution business."

RGC had total revenue of about $300 million (Can.) last year, according to Fremont, Calif.-based Synnex.

Based in Mississauga, Ontario, RGC is one of Canada's leading providers of consumer audio/video electronics and home-office and appliance brands, including Citizen, Electrohome, Koss, Magnasonic, Sylvania, Memorex and Emerson. AVS Technologies, which has its headquarters in Montreal, is a leading distributor of brands such as SanDisk, Uniden, Case Logic, Cobra, Koss, TDK, One For All and SAKAR and represents more than 10,000 retail storefronts across Canada.

"This acquisition expands our depth and breadth in the consumer electronics industry and provides Synnex Canada access to additional customers and product lines," Synnex Canada CEO Jim Estill said in a statement. "We expect the integration of the two organizations to be an efficient transition."