Garmin® Signs Letters of Intent to Acquire Distributors in Belgium and Finland
Garmin Ltd. (NASDAQ: GRMN) announced today that it has signed letters of intent for the proposed acquisition of Formar Electronics N.V./ S.A. (“Formar”), the distributor of Garmin’s consumer products in Belgium and Luxembourg, and NavCor Oy (“NavCor”), 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.
Dr. Min Kao, chairman and CEO of Garmin Ltd., said, “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. 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.”
Benoit de Bergeyck, managing director of Formar, said, "We are excited about the future growth possibilities and the benefits for our customers that full integration into Garmin family will enable us to achieve.”
Tony Malmström, managing director of NavCor, said, “We at NavCor are also proud of our achievements in building the Garmin brand in Finland. We expect to be able to achieve additional efficiencies and capture more opportunities through full integration into Garmin.”
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.
About Garmin Ltd.
Through its operating subsidiaries, Garmin Ltd. designs, manufactures, markets and sells navigation, communication and information devices and applications – most of which are enabled by GPS technology. Garmin is a leader in the consumer and general aviation GPS markets and its products serve aviation, marine, outdoor recreation, automotive, wireless and OEM applications. Garmin Ltd. is incorporated in the Cayman Islands, 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 29, 2007 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin’s Form 10-K can be downloaded 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.