3/3/08 - Garmin acquires two European distributors

Garmin Ltd., an Olathe maker of navigational devices, said Monday it intends to acquire two European distributors.

The companies have signed letters of intent for the acquisitions of Formar Electronics N.V., which distributes Garmin’s products in Belgium and Luxembourg, and NavCor Oy, which distributes Garmin’s products in Finland.

The completion of the acquisitions still requires additional negotiation for a definitive agreement, legal and financial due diligence and other actions.

The deals are expected to be completed by May. Terms were not disclosed.

The acquisitions will boost Garmin’s ability to distribute its products in European markets and support key retailers and manufacturing partners in these regions, Min Kao, Garmin’s chairman and CEO, stated in a release.

“Both Formar and NavCor have achieved considerable success in promoting the Garmin brand in their respective countries and we anticipate that these acquisitions will enable us to build further on that success,” Kao said.

After the acquisition, Formar is to change its name to Garmin Belux N.V./S.A. and NavCor is expected to change its name to Garmin Suomi Oy.

Both companies are expected to maintain their management, sales, marketing and supporting teams, which consist of about 30 people combined for both companies. They will continue operating from their headquarters in Brussels, Belgium and Lohja, Finland.