Micro D Agrees to Be Acquired by Ingram Industries

Micro D Inc., the nation’s largest wholesaler of personal computer products, agreed Thursday to be acquired by its majority shareholder, Ingram Industries of Nashville, Tenn., in a $43.9-million deal.

The agreement came after Ingram boosted its cash tender offer for the 41% of Micro D it doesn’t already own from $12.50 a share, or $37 million, to $14.75 per share.

Ingram first proposed a buyout to Micro D management on Dec. 14, but Micro D rejected the $12.50-a-share offer as inadequate. Ingram responded by taking the same offer directly to shareholders last week.

At that time, Ingram Industries’ president, E. Bronson Ingram, said the company would not increase its offer because its financial review indicated that Micro D was unlikely to achieve its projected sales growth for 1989. Company officials could not be reached for comment Thursday.

Headquarters in Santa Ana

Ingram said last week that it intends to merge Micro D with Ingram Computers, its computer products distribution subsidiary based in Buffalo, N.Y. Micro D Chief Financial Officer Godfred P. Otuteye said the merged company would have its headquarters in Santa Ana, where Micro D already is based.

He also said Ingram “has expressed its desire to keep the current management in place” but that no final decision has been made.

Micro D sales are expected to top $525 million in 1988.