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Clayton, Dubilier & Rice to Acquire Anixter International for $3.8 Billion in Cash

With the acquisition, Anixter, the largest wire and cable specialist in the world, will become a private company and is expected to close by the end of Q1 2020.

Anixter International, Glenview, IL, entered into a definitive agreement with an affiliate of the Clayton, Dubilier & Rice (CD&R) private-equity firm to be acquired in an all-cash transaction valued at approximately $3.8 billion.

The transaction will result in Anixter, the largest wire and cable specialist in the world, becoming a private company and is expected to close by the end of the first quarter of 2020, according to the press release. Electrical Wholesaling’s 2019 Top 200 ranks Anixter as the fourth largest distributor of electrical supplies in North America.
Under the terms of the merger agreement, CD&R-managed funds will acquire all of the outstanding shares of Anixter common stock for $81 per share in cash. This represents a premium of approximately 13% over Anixter’s closing price on Oct. 29, and a premium of approximately 27% over the 90-day volume-weighted average price of Anixter’s common stock for the period ended Oct. 29.

Over the years, CD&R has had quite a few industrial distributors in its portfolio. It currently owns Beacon Roof Supply, said to be the largest publicly-traded distributor of residential and commercial roofing materials and related building products in the United States, and SunSource, a distributor of fluid power and motion control technologies.
CD&R also owned WESCO before selling the company in 1998 to the Cypress Group and before WESCO Distribution Inc.’s initial public offering in 1999. CD&R also at one time had a big stake in Rexel through Ray Investment, which according to a 2013 post on is a partnership controlled by CD&R, Eurazeo, Bank of America, Merrill Lynch and a Canadian pension fund manager. Ray Investment no longer has a stake in Rexel.

Bill Galvin, Anixter’s president and chief executive officer, said in the press release that CD&R’s experience with industrial distributors was one of the major reasons Anixter’s board of directors approved the sale to CD&R.

“We believe this transaction is in the best interest of Anixter and our stockholders,” he said. “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 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 press release said that it’s anticipated that upon completion of the transaction, Bill Galvin, along with other members of Anixter’s executive management team, will continue to lead the company.

Anixter has been an active acquirer itself over the years, most recently with its 2015 purchase of HD Supply Power Solutions for $825 million in cash. That acquisition gave Anixter a lead position in the utility distribution niche, where HD Supply was the largest player. According to Electrical Marketing’s acquisition database, Anixter made at least 11 other acquisitions in addition to HD Supply from 2002 to 2014, including World Class Wire & Cable, Waukesha, WI, and Tri-Ed Distribution, Woodbury, NY. The company had also made several acquisitions to expand into fasteners, but sold its OEM Supply-Fasteners unit to American Industrial Partners (AIP) for $380 million in cash in 2015.


Click on the green button below to see the electrical distributor acqusitions that Electrical Marketing and Electrical Wholesaling have reported on in 2018 and 2019.  Access to Electrical Marketing's complete acquisition database going back to the 1990s is available as part of a $99 annual subscription.

CPI Automation and Control SolutionsDenverCOBarr-Thorp Electric Co.MerriamKS2018
Allied Electric FresnoCABuckles-SmithSanta ClaraCA2018
Berthold Electric Power Services/Gus Berthold Electric Co.ElginILCircuit Breaker Sales Co.GainesvilleTX2018
Anixter Inc.GlenviewILClayton, Dubilier & Rice (CD&R)New YorkNY2019
Van Meter's Bright Electric locationChicagoILConnexionChicagoIL2019
Sun Valley Electric Las VegasNVConsolidated Electrical Distributors (CED)DallasTX2019
Nu-Lite Electrical WholesalersHarahanLAConsolidated Electrical Distributors Inc. (CED)IrvingTX2019
Electrical Equipment & Engineering (3E)Windsor HeightsIAConsolidated Electrical Distributors Inc. (CED)IrvingTX2018
Tri State Supply Co.WashingtonPAConsolidated Electrical Distributors Inc. (CED)IrvingTX2018
National Electric SupplyAlbuquerqueNMCrescent Electric Supply Co.East DubuqueIL2018
Omni Cable Corp.WestchesterPADot Family HoldingsSt. LouisMO2019
Top of the LampAnn ArborMIGross ElectricToledoOH2018
N.H. BraggBangorMEHorizon SolutionsRochesterNY2019
Becker Electric SupplyDaytonOHKendall ElectricPortageMI2019
Kaman Corp.'s distribution businessBloomfieldCTLittlejohn & Co.GreenwichCT2019
Richmond Electric Supply CO. (RESCO)RichmondVALocke Supply Co.Oklahoma CityOK2019
The Hite Co.AltoonaPAMayer Electric Supply Co. Inc.BirminghamAL2018
Bronx branch of Crescent Electric SupplyBronxNYPower-Flo Technologies/Long Island Electrical DistributingNew Hyde ParkNY2019
KOM AutomationAmherstNYShingle and Gibb AutomationMoorestownNJ2019
City Electric Co. Inc.SyracuseNYSonepar North AmericaCharlestonSC2018
ELGB NVBelgiumSonepar SAParisFrance2018
Solar A/S's GFI GmbH & AustriaSonepar SAParisFrance2018
North Coast Electric SeattleWASonepar USACharlestonSC2019
Tri-State Lighting & SupplyEvansvilleINSpringfield Electric SupplySpringfieldIL2018
Valley Electric SupplyVincennesINSpringfield Electric SupplySpringfieldIL2018
Owensboro branch of Hannan Supply Co.OwensboroKYSpringfield Electric SupplySpringfieldIL2018
Associated of Los AngelesLos AngelesCATurtle & Hughes Inc.LindenNJ2018
Franklin Electric Co.MoorestownNJUS Electrical Services Inc. (USESI)ExtonPA2019
Main Electric SupplyMonroe TownshipNJUS Electrical Services Inc. (USESI)ExtonPA2019
US LampGreen BayWIWerner Electric Supply Co.AppletonWI2019
Sylvania Lighting SolutionsWilmingtonMAWESCO International Inc.PittsburghPA2019
Kentucky Lighting & SupplyLexingtonKYWiseway SupplyFlorenceKY2019
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