In 1978, Shang-wa Electronics, a small Korean manufacturer of capacitors, entered into an exclusive United States distribution contract with Bernard Lester, who then officially founded Lester Electronics, Inc. (LEI) (, 2006). Lester Electronics, Inc. is a consumer and industrial electronics parts master distributor; the company markets its products to small- and medium-sized original equipment manufacturers (OEMs), repair facilities, and small local distributors throughout the Americas and Europe. The company’s revenues estimated at $500 million a year. Lester Electronic Inc. went public and traded on the NASDAQ market with rated Baa by a nationally recognized rating agency (University of Phoenix, 2006. Scenario One).
The key players are John Lin, CEO of Shang-wa Electronics, Bernard Lester, and CEO and found of Lester Electronics, Inc., David Antone, CEO of Transnational Electronics Corporation, Robert Paget, Vice President of Acquisitions, Avral Electronics, and Peter Zack, Managing Director, Silver Socks Company (University of Phoenix, 2006. Scenario One).
John Lin CEO of Shang-wa Electronics, which began manufacturing capacitors in 1969, builds a small, well-respected business in Korea. Lin has been manufacturing capacitors, the small components used in myriad consumer and industrial appliances, nearly his working life. Though the joint venture would enable both companies to meet growing demand for the niche product Shang-wa offers, John knows it would also provide Shang-wa with much-needed management talent and a long-term opportunity to exit the business if Lester were willing to buy Shang-wa outright a few years down the road (University of Phoenix, 2006. Scenario One).
David Antone, CEO of Transnational Electronics Corporation (TEC). Transnational Electronics is a large manufacturer and distributor of electronics components, is growing. TEC has recognized the growing domestic demand for the specialty capacitors that Shang-wa manufacturers. TEC...