Bell To Buy Milgray For $100 Million

FARMINGDALE, N.Y. - Bell Industries said today it will acquire Milgray Electronics, another distributor of electronic components, for about $100 million.

Under the agreement, Bell will launch a cash tender offer of $14.77 a share for Milgray's stock within five business days.

Milgray Chairman Herber Davidson, the company's majority stockholder, has agreed to tender his stake of about 55 percent to Bell.

As a result, Farmingdale, N.Y.-based Bell said it needs to acquire less than 12 percent of the outstanding shares from other shareholders to complete the merger.

Bell will retain Milgray's management team and selling organization. The electronics distribution organizations of both companies will continue to operate independently after the merger is completed in early 1997, it said.

Bell distributes products for the electronics, computer, graphics and other industrial markets. Milgray distributes electronic components and computer products for the industrial market.

Bell's stock gained 75 cents to $20.125 early on the New York Stock exchange. Milgray rose 87.5 cents to $14.50 on Nasdaq.

Copyright, Reuters Ltd. All rights reserved