GLENVIEW, Ill.—Anixter International Inc. (NYSE:
AXE) today announced that it has completed the acquisition of Tri-Ed for
a total purchase price of $420 million, subject to working capital,
escrow and other customary adjustments. Tri-Ed generated approximately
$570 million in sales and $36 million in adjusted EBITDA over the
trailing twelve months ending June 30, 2014.
The acquisition is expected to be accretive to earnings in the first
full year of operation, exclusive of transaction and one-time
integration expenses. Anixter funded the acquisition through a
combination of a previously announced $200 million term loan and
available liquidity. A more detailed discussion of the financial impact
will occur on Anixter’s upcoming third quarter 2014 earnings call on
Tuesday, October 28, 2014.
Bob Eck, Anixter’s President and CEO, stated, “The acquisition of
Tri-Ed is a strategic opportunity for Anixter and our security business,
consistent with our vision to create a full-line global security
platform and to accelerate profitable revenue growth. Through expanding
our offering into highly complementary product lines, our customers will
benefit from a broader set of products and solutions in the areas of
video, access control, fire/life safety, and intrusion detection. As
well, the combination brings Anixter’s expertise in IP video
surveillance to Tri-Ed’s customers. In addition, this transaction
provides access to the residential construction end market at an
attractive point in the recovery cycle as well as to a community of
security integrators and dealers not currently serviced by Anixter.”
Bill Galvin, Anixter’s Executive Vice President – Enterprise Cabling
and Security Solutions, said, “We are pleased to have Tri-Ed become
part of the Anixter family, and look forward to partnering with their
experienced management team on the transition. We share a similar
philosophy in the way we operate our businesses, the product and service
offerings we bring to market, and the importance we place on our
employees, customers and suppliers.”
Pat Comunale, Tri-Ed’s President and CEO, stated, “We have great
respect for Anixter and are excited about the opportunities that this
combination will create for our people and our business. We look forward
to building on our long-standing supplier partnerships and customer
relationships to create an even stronger security business.”
Ted Dosch, Anixter’s Executive Vice President of Finance and CFO,
commented, “Consistent with our stated priorities for capital
allocation, the Tri-Ed acquisition accelerates the pace of growth in our
security business, which is one of our strategic growth initiatives. We
are focused on the successful integration of the Tri-Ed business and
expect to realize the benefits of the combination immediately, as well
as to create additional opportunities as we fully integrate Tri-Ed into
our long term strategic platform. Finally, we expect our strong cash
flow generation will enable us to return to our target debt-to-capital
range within 12 months, providing us with the continued financial
flexibility that is a hallmark of our financial strategy.”
Greenhill & Co. served as financial advisor and Skadden Arps served as legal counsel to Anixter on the transaction.
About Anixter
Anixter International is a leading global distributor of enterprise
cabling and security solutions, electrical and electronic wire and
cable, and OEM supply fasteners and other small parts. The company adds
value to the distribution process by providing its customers access to
1) innovative inventory management programs 2) over 525,000 products and
$1 billion in inventory 3) over 260 warehouses with approximately 7.5
million square feet of space and 4) locations in over 280 cities in more
than 50 countries. Founded in 1957 and headquartered near Chicago,
Anixter trades on the New York Stock Exchange under the symbol AXE. To
learn more about the company, please visit Anixter.com.