Jaco Agrees To Sell Assets Of Electronic Components Distribution Business To WPG Americas
Jaco Electronics, Inc. announced that it had reached an agreement in principle to sell to WPG Americas, Inc. ("WPG"), a subsidiary of World Peace Industrial Group, certain assets of Jaco’s components distribution business. The transaction is subject to customary closing conditions and is expected to close within the next 30 days. During a transition period, Jaco will provide support to its vendors and customers and to WPG with respect to logistics and enterprise resource and planning.
Joel Girsky, Chairman, President and CEO of Jaco Electronics stated, "For the last few years, we have stated that the electronic components business has been transitioning to Asia. As a result, we have decided to shift our strategy and focus on Jaco’s core competency – displays and embedded computing. In WPG we have found a suitor that is committed to growing our North American component business. Going forward, we will be solely focused on our faster growing Flat Panel Displays (FPD) product and valued-added services offerings. We have invested heavily in this area, including technical personnel and a talented and experienced sales and management team. As a result, we now have assembled what is recognized as one of the premier Value-Add FPD firms in the marketplace, with perhaps the largest cadre of authorized suppliers. We have sustained continuous growth over the last eight years. We expect further growth and more importantly, profits going forward."