Monoprice Acquisition by YFC-BonEagle Electric Co.,
Ltd. to Fuel Growth and Strengthen Asia Sourcing Capabilities
Partnership Positions Leading E-Retailer for Continued
Success Expanding Business into New Categories and Delivering Quality Products
at Fair Prices
Rancho
Cucamonga, Calif. (November 18, 2016) –
Monoprice, a leading online retailer offering high-quality and
affordably priced consumer electronics and tech accessories, and YFC-BonEagle
Electric Co., Ltd. (YFC), a Taiwan-based
leading provider of power cord sets and networking peripherals, announced today
that YFC has acquired Monoprice in a cash transaction valued at $40 million.
Founded in 2002, Monoprice is an
industry innovator disrupting the consumer technology industry by offering high-quality
electronics, cables and components that eliminate cost markups within the
supply chain. An advanced communication products supplier, YFC’s strengths lie
in manufacturing in Asia as well as the wholesaling of cables and wires. The mutually
beneficial merger will fuel Monoprice’s growth as it continues to evolve
product pipelines within existing categories, expand into new ones, and strengthen
its sourcing capabilities in China to yield the best prices. Monoprice will help
guide YFC into opportunistic areas where it can increase its Asian factory
footprint and launch products in new categories.
“Our overarching goal is to create a
sales and manufacturing dual-force dynamic for the group’s next generation of
growth,” said Mark Yeh, chairman at YFC. “This acquisition is intended to gain
access to consumer electronics users and make our strong product offering even
stronger. We manufacture high-quality, high-standard cables and wires as an OEM
supplier, and we’ve been marketing branded products as wholesalers for quite
some time. Monoprice’s expertise in e-commerce and its wide customer base will
complete our salesforce and customer portfolio. We have worked with Monoprice for
many years and see significant growth potential and strategic synergies by
coming together.”
Monoprice has over a decade of
e-commerce experience in the consumer electronics industry, offering a broad
and differentiated combination of branded products via a multi-channel
platform. Its website, Monoprice.com, has a robust source of revenue,
representing more than 67 percent of total sales. It also partners with
third-party marketplaces, such as Amazon and Wal-Mart, to gain brand
recognition and further open revenue opportunities. Monoprice’s strong customer
relationships provide a base for sustainable growth by YFC and Monoprice.
Monoprice has
created a disruptive business model in consumer electronics retailing. It has
established a strong competitive position by offering consumers lower prices
because of its close relationships with top-tier manufacturers. YFC, well-respected in China for its manufacturing and
supply chain capabilities, will provide Monoprice with an even better sourcing process
and economies of scale. The integration of supply chains across all product
offerings will allow Monoprice to offer consumers with attractive pricing and will
accelerate new product introductions with easier access to development
opportunities.
“The combination of our two businesses
is great news not only for our stakeholders, but also our customers and
employees,” said Bernard Luthi, CEO at Monoprice. “Joining forces with YFC fully
supports our business objectives and accelerates both companies’ roadmaps for
continued growth. YFC’s strong manufacturing power and overnight access to the well-connected
Asian supply chain gives us a distinct competitive advantage and differentiation
in product procurement and pricing. We intend to reinforce B2B and
international sales operations, and we look forward to continuing to deliver
better and wider choices of products at more affordable prices to our
customers.”
Post-transaction
plans are to retain and empower the current Monoprice leadership team with no
operational or organizational restructuring required. Bernard Luthi will remain
Monoprice’s CEO following the transaction, overseeing his management team to
execute the company’s strategies and vision, and steer company growth.
Blucora and Monoprice were advised
by Financo and YFC was advised by KPMG Corporate Finance out of
Taipei.
For
more information about YFC, please visit www.cables.com.tw. For more information about Monoprice, please visit www.Monoprice.com.
About
YFC-BonEagle Electric Co., Ltd.:
Founded in 1983, YFC-BonEagle Electric
Co., Ltd has been engaged in developing, manufacturing, and selling power cord
sets, LAN cables, patch cords, and related networking accessories worldwide.
The company’s products are manufactured in three facilities in Taoyuan Taiwan,
Dongguan China and Wuxi China. YFC’s offices are in the USA, China and Europe
along with the global distribution networks to provide direct and timely
support to its customers around the world. For more information: www.cables.com.tw
About
Monoprice, Inc. (DBA Monoprice.com)
Located
in Rancho Cucamonga, Calif., Monoprice, Inc. is an e-commerce leader
specializing in providing more than 6,500 high-quality yet affordable
electronics and tech products. As an industry innovator, Monoprice fills a void
in the consumer technology market by delivering exceptional products that are
on par with the best known national brands at prices far below the retail
average with incomparable speed and service. Maintaining a business philosophy
that focuses on the needs of its customers, the company strives to bring
simplicity, fairness and confidence to consumers and businesses shopping for
big-ticket electronics and tech accessories. For more information about
Monoprice, follow us on Facebook, Twitter, LinkedIn, Google+, and YouTube.
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