Anixter International Inc., Glenview, Ill., agreed to sell its OEM Fasteners segment to American Industrial Partners, a New York-based private equity firm, for $380 million in cash, subject to post-closing adjustments. The transaction is expected to close during the second quarter of 2015, subject to customary closing conditions and regulatory approval.
Fasteners is a global distributor and manufacturer of highly-engineered fasteners for customers in the heavy truck, power train, luxury automotive, agriculture, construction, recreational vehicles and other verticals. It serves customers in 15 countries, and reported 2014 revenues of $938.5 million and operating profit of $39.1 million.
“This transaction follows significant progress by the Fasteners team in delivering improved operating performance and benefits to all stakeholders,” said Bob Eck, president and CEO of Anixter. “Following the transaction, Anixter will have a sharper strategic focus on our core Enterprise Cabling & Security Solutions (ECS) and Electrical and Electronic Wire & Cable (W&C) segments and additional financial flexibility to build on these strong global platforms through organic investments, as well as strategic acquisitions, allowing us to continue to deliver long-term value to shareholders. For Fasteners, this transaction will provide access to additional operational expertise and financial resources to drive continued growth in its industry.”
The fasteners business includes 73 distribution centers, 12 quality labs and more than 1,900 employees worldwide. The business will continue to be led by its current management team, with Ian Clarke assuming the role of president and CEO of the new company. The company’s headquarters will remain in Glenview, and the name of the new company will be announced upon closing.
“I am confident that we have found the right partner in AIP, who brings deep operating and industry expertise as well as additional financial resources, which will enhance our ability to meet the needs of our customers and capitalize on global growth opportunities,” said Clarke in a release.
Anixter, founded in 1957, operates approximately 270 warehouses/branch locations with 7.5 million square feet of space in 300 cities in more than 50 countries, and carries over $1.1 billion in inventory.
