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Chip Seller Bell to Buy Rival Firm

November 28, 1996|From Bloomberg Business News

Bell Industries Inc. said Wednesday that it agreed to acquire rival electronic-components distributor Milgray Electronics Inc. for $14.77 a share, or about $100 million in cash.

Los Angeles-based Bell Industries and Milgray, both distributors of computer chips, semiconductors and resistors, said they are the sixth- and 10th-largest publicly traded industrial electronic-components distributors in the U.S., respectively. The acquisition would produce economies of scale and an expanded sales base and increase customer and supplier services, Bell Chief Executive Theodore William said.

Bell said Milgray Chairman Herbert Davidson, who owns 55% of the company's common stock, would be named to Bell's board and serve as vice chairman.

Shares of Farmingdale, N.Y.-based Milgray Electronics rose 75 cents to close at $14.375 on Nasdaq; Bell shares rose 62.5 cents to $20 on the New York Stock Exchange.

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