Anixter agrees private equity acquisition 19 November 2019

Anixter International Inc has agreed to be acquired by an affiliate of private equity firm Clayton, Dubilier & Rice LLC (CD&R) in an all cash transaction valued at US$3.8 billion (€3.4 billion). The transaction will take Anixter private and is expected to close by the end of first quarter 2020.

Under the merger agreement terms, CD&R managed funds will acquire all outstanding shares of Anixter common stock for US$81 per share in cash, representing a 13% premium over Anixter’s closing price on 29th October 2019, and a premium of around 27% over the 90 day volume-weighted average price up to that date.

“We believe this transaction is in the best interest of Anixter and our stockholders,” said Bill Galvin, Anixter’s president and chief executive officer. “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 recognises 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.”

Nate Sleeper, partner at CD&R, said: “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.”

Bill Galvin, and other members of the current executive management team, are expected to continue to lead the company.

Anixter’s board of directors has unanimously approved the agreement and recommends Anixter stockholders also approve it. Certain stockholders, including entities associated with Sam Zell, chairman of the Anixter board, which own approximately 9% of the outstanding shares of Anixter common stock, have agreed to vote their shares in favour of the merger. The transaction is subject to the approval of Anixter’s stockholders, regulatory approvals and other customary closing conditions.

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Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.