WESCO Buys Anixter
WESCO buys Anixter.
WESCO International buys Anixter International for $4.5 billion.
The joint company, with pro forma revenues of $17 billion, will be a top electrical and data comms distributor in North America. With global reach and exposure, 12% of revenues will come from abroad. Increased scale will speed up digitization and deliver growth platforms in emerging markets.
WESCO's skills in industrial, construction, and utility united with Anixter's ability in data comms, security, wire, and cable. Merging products, services, technologies, and solutions creates major cross-selling opportunities, firming the customer value proposition and supplier relationships.
WESCO expects annual cost synergies of $200 million by the end of year three through overhead efficiencies. These include duplicate public company costs, branch and distribution center optimization, and yield in purchasing, field operations, and supply chain. Sales growth will come from cross-selling harmonized product and service offerings and exploiting better abilities across both networks.
John Engel of WESCO said: ‘The transformational combination of WESCO and Anixter will create a premier electrical and data communications distribution and supply chain services company. 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 when and wherever they need them around the globe. Given the enhanced strategic profile and competitiveness of the joint company, we are confident we will deliver improved growth and earnings, and exceptional cash flow generation. We look forward to welcoming Anixter's talented associates to the WESCO team as we embark on this next chapter and create real value for our stockholders, customers, suppliers, and people.’
Sam Zell of Anixter said: ‘Today's announcement is the culmination of a comprehensive process that showed, from the start, what a strong business the team at Anixter has built. The agreement with WESCO is a great result for our stockholders who will receive significant near-term value and stand to benefit from the joint company's growth and prospects.’
Bill Galvin of Anixter said: ‘This is the result of a thorough process to find the value of our company. It's also a recognition of the enormous value created by our talented people, Anixter's deep industry relationships, innovative technology solutions, and global reach. Looking ahead, the combination with WESCO will allow the joint company to build on our complementary capabilities and create new ways to serve customers and partners.’
Barclays served as financial advisor to WESCO. Wachtell, Lipton, Rosen & Katz served as legal advisor.
Centerview Partners and Wells Fargo Securities served as financial advisor to Anixter. Sidley Austin served as legal advisor.
WESCO International buys Anixter International for $4.5 billion.
The joint company, with pro forma revenues of $17 billion, will be a top electrical and data comms distributor in North America. With global reach and exposure, 12% of revenues will come from abroad. Increased scale will speed up digitization and deliver growth platforms in emerging markets.
WESCO's skills in industrial, construction, and utility united with Anixter's ability in data comms, security, wire, and cable. Merging products, services, technologies, and solutions creates major cross-selling opportunities, firming the customer value proposition and supplier relationships.
WESCO expects annual cost synergies of $200 million by the end of year three through overhead efficiencies. These include duplicate public company costs, branch and distribution center optimization, and yield in purchasing, field operations, and supply chain. Sales growth will come from cross-selling harmonized product and service offerings and exploiting better abilities across both networks.
John Engel of WESCO said: ‘The transformational combination of WESCO and Anixter will create a premier electrical and data communications distribution and supply chain services company. 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 when and wherever they need them around the globe. Given the enhanced strategic profile and competitiveness of the joint company, we are confident we will deliver improved growth and earnings, and exceptional cash flow generation. We look forward to welcoming Anixter's talented associates to the WESCO team as we embark on this next chapter and create real value for our stockholders, customers, suppliers, and people.’
Sam Zell of Anixter said: ‘Today's announcement is the culmination of a comprehensive process that showed, from the start, what a strong business the team at Anixter has built. The agreement with WESCO is a great result for our stockholders who will receive significant near-term value and stand to benefit from the joint company's growth and prospects.’
Bill Galvin of Anixter said: ‘This is the result of a thorough process to find the value of our company. It's also a recognition of the enormous value created by our talented people, Anixter's deep industry relationships, innovative technology solutions, and global reach. Looking ahead, the combination with WESCO will allow the joint company to build on our complementary capabilities and create new ways to serve customers and partners.’
Barclays served as financial advisor to WESCO. Wachtell, Lipton, Rosen & Katz served as legal advisor.
Centerview Partners and Wells Fargo Securities served as financial advisor to Anixter. Sidley Austin served as legal advisor.
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