Brightpoint pays $88M for CellStar’s U.S. and Latin American biz

PLAINFIELD, Ind.-Brightpoint Inc. has agreed to purchase the U.S. and Latin American operations of fellow logistics and distribution company CellStar Corp.
“We believe that the proposed transaction will expand our geographic reach, broaden our product offering, and improve our overall efficiency in order to create long-term value for all of our stakeholders,” said Robert Laikin, chairman and CEO of Brightpoint. “Specifically, with the addition of the Miami-based Latin America business, we will bolster Brightpoint’s capabilities for providing distribution and logistic services to customers and suppliers throughout Latin America.”
CellStar did not divest its operations in Mexico and Chile. According to the two companies, both boards have approved the transaction, which involves Brightstar paying CellStar $88 million in cash. The deal is expected to close in March or April. Brightpoint estimated that revenues from the acquired operations will exceed $450 million in the first year of the acquisition.
Shares of Brightpoint inched upward following the news, gaining 32 cents, or more than 2 percent, to $13.25 per share. CellStar stock plummeted on the news, losing 20 percent to $2.77 each.