Anixter’s decision to go private and be acquired by Clayton, Dubilier and Rice surprised some people in the industry. During the company’s third-quarter conference call, President and CEO Bill Galvin explained some of the details of the agreement and the reason behind it.
Galvin reports CD&R paid $81 a share in cash for Anixter, which results in approximately $3.8 billion. The $81 a share price is 13% over the Anixter closing price from the prior day, and 27% higher than the 90-day volume-weighted share price. Galvin also says the Anixter board of directors approved the acquisition unanimously.
“After careful and thorough analysis together with our independent advisors, our Board of Directors unanimously approved the transaction with Clayton, Dubilier & Rice. CD&R has a strong reputation and track record of success, working with distributors, like Anixter, to prosper and grow,” Galvin told reporters during the conference call.
Galvin also said the two companies share similar cultures and values, making it a good fit. And, since CD&R has distribution expertise, he believes it will be an excellent partnership.
“We weren’t looking to go private,” Galvin added. “We were running the company as a public company and we’re prepared to do that. We’ve been very public about what our strategy is long-term. And we were approached by a company that we felt was a serious — seriously interested in our company, and of course, it’s our responsibility — our fiduciary responsibility to consider serious companies. And that is how we started in this venture.”
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