Anixter to Be Acquired for $3.8B by Private Equity Firm

Anixter will become a private company following the all-cash transaction, which is expected to close by the end of the first quarter of 2020.

GLENVIEW, Ill.— Global distributor Anixter Int’l (NYSE: AXE) announces it has entered into a definitive agreement with an affiliate of Clayton, Dubilier & Rice (CD&R) to be acquired in an all cash transaction valued at approximately $3.8 billion.

The transaction will result in Anixter becoming a private company and is expected to close by the end of the first quarter of 2020, according to an announcement.

Under the terms of the agreement, CD&R-managed funds will acquire all of the outstanding shares of Anixter common stock for $81.00 per share in cash, a premium of approximately 13% over Anixter’s closing price on Oct. 29, 2019. CD&R is a private investment firm that has managed the investment of $28 billion in 86 companies since 1978, including numerous electrical and industrial distributors.

“We believe this transaction is in the best interest of Anixter and our stockholders,” says 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.”

Bill Galvin, along with other members of Anixter’s executive management team, are anticipated to continue leading the company upon completion of the transaction.

“Anixter is an exceptionally well-positioned industrial distributor with leading market positions and differentiated capabilities that deliver strong customer value. 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,” says Nate Sleeper, partner at CD&R.

The transaction is subject to the approval of Anixter’s stockholders, regulatory approvals and other customary closing conditions.

Anixter unified its Tri-Ed and CLARK brands under the “Anixter” banner early last year. Check out this exec interview from the June 2018 issue of SSI to learn more about Anixter.

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