GLENVIEW, Ill. — Anixter, which announced Oct. 29 that it had agreed to be acquired for $3.8 billion by private investment firm Clayton, Dublier & Rice (CD&R), said it is engaged in discussions with a potential alternative suitor.
Acknowledgment of the discussions came to light in a Form 8-K filed with the Securities and Exchange Commission (SEC) on Dec. 4. The 8-K included an email sent to employees from Anixter President and CEO Bill Galvin, who explained the agreement with CD&R allowed for “a go-shop period” to solicit potential interested parties to come forward and make a superior proposal to purchase the company.
Galvin confirmed the company “did receive interest from another party.” Although he did not disclose the name of the interested party, he said Anixter is “engaged in continuing discussions.”
“We cannot guarantee that the discussions will result in a superior proposal,” Galvin said in the email. “At this time, we still have a signed agreement in place with CD&R and are working to consummate the transaction under that agreement.”
Galvin said CD&R has raised its purchase price by $1.50 per share to a current offer of $82.50 per share.
However, streetinsider.com reported sources have confirmed that WESCO Int’l (NYSE: WCC) is the competing bidder for Anixter. WESCO, a top Anixter competitor, offered to acquire the company for $90 per share (70% cash and 30% stock), the website reported.
In 1994, CD&R arranged for the purchase of WESCO from Westinghouse. CD&R sold WESCO to the Cypress Group for $1.1 billion in 1998.
Anixter is a global distributor of network and security solutions, electrical and electronic solutions and utility power solutions. The company stated Oct. 29 that it has approximately 130,000 customers; nearly 600,000 products; more than $1 billion in inventory; 316 warehouse/branch locations with more than 9 million square feet of space; and locations in more than 300 cities and approximately 50 countries.
The company 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.
