Garmin Ltd. is moving to snap up more of its European distributors.
The maker of GPS devices said it has signed letters of intent for the proposed acquisition of Formar Electronics N.V./ S.A., the distributor of Garmin's consumer products in Belgium and Luxembourg, and NavCor Oy, the distributor of Garmin's consumer products in Finland.
The completion of each of these acquisitions is subject to the negotiation and execution of a definitive acquisition agreement, the completion of legal and financial due diligence and customary closing conditions. The acquisitions are expected to be completed by May, 2008.
“The acquisitions of Formar and NavCor will further strengthen Garmin's distribution in European markets and enable us to enhance our ability to support key retailers and OEMs in these markets,” said Dr. Min Kao, chairman and CEO of Garmin Ltd.. “Both Formar and NavCor have achieved considerable success in promoting the Garmin brand in their respective countries and we anticipate that these acquisitions will enable us to build further on that success.”
Financial terms of the proposed transactions were not released.
Following the acquisition, Formar is expected to change its name to Garmin Belux N.V./S.A. and NavCor is expected to change its name to Garmin Suomi Oy. Formar and NavCor will retain their management, sales, marketing and supporting staff, consisting of 25 people and approximately seven people respectively, and will continue operations at their current headquarters located respectively in Brussels, Belgium and Lohja, Finland.