TTI, a US based distributor of electronics components, is going to acquire the electronics company in Israel known as Ray – Q Interconnect, which it announced last weekend. We have not learned any of the financial specifics of the deal as they were not disclosed.
Berkshire Hathaway, run by Pres. and CEO Warren Buffett, wholly owns TTI. Before the deal can commence, the Israeli regulatory authorities have to approve the sale.
If all goes well, this is going to be the third acquisition in Israel for Berkshire Hathaway. It follows the 2006 deal to buy Iscar, a blades maker that they purchased for $6 billion. (The second tranche of that deal was just completed this year during May.) The purchase of Iscar was actually Warren Buffett’s first acquisition outside of North America. As well in 2006, CTB International, a unit of Berkshire Hathaway, took over controlling interest in the company AgroLogic. They develop agricultural technology.
Ray – Q was founded in 1969, and the company is headquartered in Airport City which is near Lod. The company currently has around 70 employees. It also has operational branches in India and Turkey. The company specifically supplies equipment for connectivity to the aerospace and military industries, as well as serving as distributor and representative for some of the other connectivity component suppliers in India, Turkey, Israel and Central and Eastern Europe. The TTI deal doesn’t appear that it will result in any layoffs.
“It’s not often a company has the opportunity to add such longevity and superior technical value to their service offering,” said TTI Europe and Asia president Gene Conahan. “I am very pleased to be bringing the wiring and harness assembly expertise of Ray–Q to the TTI teams in Europe and Asia – and to the benefit of our customers worldwide.”
Ray – Q’s CEO since 1976, Yigal Funt, will stay on and continue to manage the company once the purchase is complete.
“On behalf of our associates and customers, I can confidently say that we are most pleased to be joining such venerable organizations as TTI and Berkshire Hathaway,” commented Funt. “We look forward to their support in the globalization of our vision to be a prime supplier of electrical and FO interconnect products and solutions to high reliability system manufacturers.”