Wesco joins race to acquire Anixter with $90 per share offer

Wesco International has joined the race to acquire Anixter International, a US-based distributor of network and security solutions, electrical and electronic solutions, and utility power solutions, for $90 per share.

The announcement from Wesco comes just a day after Anixter said that it had agreed to an amended offer from a fund sponsored by Clayton, Dubilier & Rice (CD&R) to be acquired by the latter in an all-cash deal worth around $4 billion. The deal signed with CD&R translates to $86.00 per share in cash and a $2.50 contingent value right.

CD&R had last month offered $82.50 per share or around $3.9 billion in cash to acquire Anixter. Originally, in October 2019, CD&R offered to acquire the company for $81 per share or around $3.8 billion.

Sam Zell – Chairman of the Anixter Board of Directors said: “On behalf of Anixter’s Board of Directors, we are pleased to accept the amended acquisition proposal from CD&R and have concluded that it is in the best interest of Anixter’s stockholders.

“In evaluating the proposal, the Board has considered other alternatives and has run a thorough process focused on ensuring that our stockholders receive superior value with maximum certainty of successful timely completion. This is the right outcome for Anixter and its stockholders.”

Wesco joins race to acquire Anixter with $90 per share offer. Image by Free-Photos from Pixabay.

Wesco has now offered a higher price than CD&R to acquire Anixter in a move to create a leading electrical and data communications distribution company. The latter is yet to release an official response on the new offer.

Headquartered in Pennsylvania, Wesco provides electrical, industrial, and communications maintenance, repair and operating (MRO) and original equipment manufacturer (OEM) products, construction materials, and advanced supply chain management and logistics services.

John J. Engel – Wesco Chairman, President and CEO said: “Our proposal to acquire Anixter represents a compelling opportunity to deliver significant and immediate value to Anixter’s stockholders, and to afford Anixter stockholders the ability to participate in the long-term growth and value creation of the combined company.

“Given the substantial expected synergies and an enhanced strategic profile for the combined company, we believe that Wesco’s acquisition of Anixter is in the best interests of both companies and their stockholders. This transaction would deliver significant and superior value to our respective stockholders.

“We are currently determining next steps to effect a transaction and expect to have further comment on these matters shortly.”

Wesco has engaged Barclays as financial advisor and Wachtell, Lipton, Rosen & Katz as legal advisor.