Garmin® Signs Letter of Intent to Acquire South African Distributor
SCHAFFHAUSEN, Switzerland--(BUSINESS WIRE)--Garmin Ltd. (NASDAQ: GRMN) announced today that it has signed a letter of intent for the proposed acquisition of Garmin Distribution Africa (Pty) Ltd. (GDA), the distributor of Garmin’s automotive, outdoor recreation, fitness and marine products in Southern Africa.
After the acquisition is completed, the company will be renamed Garmin Southern Africa (Pty) Ltd. and will continue operations at its current headquarters and warehouse facility located near Johannesburg, which employs approximately 70 associates.
“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.
The global leader in satellite navigation, Garmin Ltd. and its subsidiaries have designed, manufactured, marketed and sold navigation, communication and information devices and applications since 1989 – most of which are enabled by GPS technology. Garmin’s products serve automotive, mobile, wireless, outdoor recreation, marine, aviation, and OEM applications. Garmin Ltd. is incorporated in Switzerland, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's virtual pressroom at www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin is a registered trademark of Garmin Ltd.
Notice on Forward-Looking Statements:
This release includes forward-looking statements regarding Garmin Ltd. and its business. Such statements are based on management’s current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Garmin, including, but not limited to, the risk factors listed in the Annual Report on Form 10-K for the year ended December 25, 2010, filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of such Form 10-K is available at www.garmin.com/aboutGarmin/invRelations/finReports.html. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Garmin undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.