Garmin Ltd. has signed a letter of intent agreeing to acquire Garmin Distribution Africa (Pty) Ltd. (GDA), the distributor of Garmin’s automotive, outdoor recreation, fitness and marine products in Southern Africa.
“We are happy to welcome our South African team into the Garmin family,” said Dr. Min Kao, chairman and CEO of Garmin Ltd. “GDA has been our South African distributor for nearly two decades, and this acquisition will only strengthen our ties to our retailers and customers in this region.”
“We have worked hard to grow the Garmin brand in South Africa,” said Richard Fearon, GDA CEO. “Once we are fully integrated into the Garmin fold, we expect to grow the business even more in our rapidly growing region. This transaction demonstrates the confidence that Garmin has in South Africa, and the importance that it places in our office as being key to further developing Garmin’s African business.”
The completion of the acquisition is subject to the negotiation and execution of a definitive acquisition agreement, the completion of legal and financial due diligence and customary closing conditions, including regulatory approvals. The acquisition is expected to be completed in June 2011. Financial terms of the transaction were not released.