Anixter Accepts Wesco’s $US4.5B Buyout Offer
Wesco wins bidding war for Anixter.
Anixter, which owns CSD, Inner Range and Atlas Gentech in the ANZ market, reports it will be acquired by electronics and communications giant, Wesco, for $US4.5 billion.
The agreement has been approved by the boards of both companies. The transaction is subject to Anixter stockholder approval, as well as regulatory approval in the United States, Canada and certain other foreign jurisdictions, and customary closing conditions. The companies anticipate completing the transaction during the second or third quarter of 2020.
The agreement concludes a bidding war between Wesco and an affiliate of Clayton, Dubilier & Rice (CD&R). Anixter’s initial agreement in October to be acquired by the private equity firm for $81 a share in cash was terminated after CD&R waived its matching rights under the agreement.
Under terms of the merger agreement, Wesco will pay the equivalent of $100 for each Anixter share outstanding, including $70 in cash, 0.2397 shares of Wesco common stock and preferred stock consideration valued at $15.89 for each Anixter share.
Wesco said it expects to realize “cost synergies of more than $200 million by the end of year three through efficiencies in corporate and regional overhead, including duplicative public company costs, branch and distribution center optimization, and productivity in procurement, field operations, and supply chain.”
“The transformational combination of Wesco and Anixter will create a premier electrical and data communications distribution and supply chain services company,” said John Engel, Wesco’s chairman, president, and CEO.
“With increased scale and complementary capabilities, we will be ideally positioned to digitize our business, expand our extensive services portfolio and supply chain offerings, and deliver solutions to our customers whenever and wherever they need them around the globe.”
The acquisition creates an electrical, electronic security and data communications distribution business with $US17 billion in revenues.