Security products distributor Anixter on Wednesday announced that it has entered into an agreement to be acquired by an affiliate of private equity firm Clayton, Dublier & Rice (CD&R) in an all cash deal valued at approximately $3.8 billion.
The transaction, which will take Anixter private, is expected to close by the end of the first quarter of 2020. Under the terms of agreement, CD&R-managed funds will purchase all outstanding shares of Anixter’s common stock for $81 per share, a premium of approximately 13% over the company’s closing share price on Oct. 29, 2019.
“We believe this transaction is in the best interest of Anixter and our stockholders,” Anixter President and CEO Bill Galvin said in a statement. “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.”
“Anixter is an exceptionally well-positioned industrial distributor with leading market positions and differentiated capabilities that deliver strong customer value,” added Nate Sleeper, Partner at CD&R. “We look forward to partnering with the outstanding management team, led by Bill Galvin, on initiatives to grow the business and further strengthen its competitive position while maintaining Anixter’s distinctive culture grounded in operational excellence, innovation, and an unwavering commitment to the company’s employees, customers, and global partners.”
Gavin, along with the rest of Anixter’s executive management team, are expected to continue to lead the company following the completion of the transaction.
Additionally, under the terms of the agreement, Anixter will be allowed to solicit superior bids from third parties for a period of 40 calendar days through Dec. 9. In the event a superior proposal is received and accepted, Anixter would be required to pay a $45 million “break-up fee” to CD&R.
The deal is subject to the approval of the Anixter’s shareholders, regulatory approvals and customary closing conditions.
