Private equity firm buying supplier Anixter for $3.8B

Photo courtesy Anixter website.

Electrical wiring, security and utility power services firm Anixter International Inc. will be acquired by an affiliate of private equity manager Clayton, Dubilier & Rice (CD&R) in a $3.8 billion all-cash transaction.

Illinois-based Anixter announced that the definitive agreement will take it private and should close by the first quarter of 2020. Anixter shares are currently traded on the New York Stock Exchange.

CD&R-managed funds will acquire all of the outstanding Anixter common stock for $82 per share, a 13-percent premium over the company’s average closing price of the previous 90 days.

“We believe this transaction is in the best interest of Anixter and our stockholders,” said Bill Galvin, Anixter’s president and CEO. “After careful and thorough analysis, together with our independent advisors, our board of directors unanimously approved this transaction with CD&R, which has a strong reputation and a track record of success in helping industrial distributors, like Anixter, prosper and grow. We are also pleased that this transaction appropriately recognizes the value of Anixter’s customer relationships, technology and solutions, financial management and global market position. It’s a great outcome for Anixter’s employees, customers and partners. As a private company, we believe Anixter will have greater flexibility to focus on and accelerate our long-term strategic priorities.”

The Anixter release anticipated that Galvin and the current executive management team would continue to lead the company. The transaction still needs approval of Anixter’s shareholders and regulators.

Third parties can still make superior bids for the company over the 40 days through December 9.

Anixter is a distributor of network and security solutions, electrical wiring and utility power equipment. The company has more than 300 warehouse or branch locations worldwide.

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