Arrow Electronics Inc. (BBB-/Negative/A-3) recently announced that it will acquire substantially all of the assets of the Industrial Electronics Division of Pioneer-Standard Electronics Inc. (BB-/Watch Negative/--) for approximately $285 million in cash. Standard&Poor's Ratings Services does not expect the acquisition to have an impact on Arrow's ratings or outlook. Melvill, N.Y.-based Arrow will utilize a portion of its cash and short-term investments (approximately $650 million at year-end) to fund the purchase price and is not expected to incur additional debt. Current ratings reflect Arrow's leading market position and liquid balance sheet, and the expectation that profitability will improve over the near-to-intermediate term as industry conditions improve. In addition, the acquisition is expected to increase Arrow's earnings in the
