Anixter International Inc., Skokie, Ill., has signed a letter of intent to acquire the assets and operations of World Class Wire & Cable Inc. for about $62 million in cash.
Based near Milwaukee, World Class Wire & Cable is a wire-and-cable specialist. From its single location in Waukesha, Wis., World Class generates approximately $60 million per year in annualized sales and is ranked as the nation’s 132nd-largest electrical distributor, according to Electrical Wholesaling’s 2008 Top 200 listing.
Bob Eck, president and CEO of Anixter, said, “World Class has an excellent team that has won many awards for its entrepreneurial drive and track record of growth. We believe the World Class team will be an excellent fit with our existing presence in the wire and cable market in the Midwest. This acquisition positions us well to drive even stronger future organic growth.”
Anixter expects to complete the acquisition on or about Oct. 1, following the finalization of certain contract terms and conditions as well as regulatory approval.
Anixter International also said recently that it would pay about $40 million in cash and assume about $19 million in debt to acquire two overseas fastener distributors: Sofrasar SA, Sarreguemines, France, and Germany’s Camille Gergen.
Anixter said combined annual sales for the businesses are expected to be more than $110 million in 2008.
“Through the addition of numerous important customers, primarily in France and Germany, we have added another key building block that will drive future organic growth in this important global end market,” Eck said in a statement.
Anixter is ranked as the nation’s fourth- largest electrical distributor, according to Electrical Wholesaling.