Distributors

Anixter to Acquire Power Solutions Segment of HD Supply

GLENVIEW, Ill. — Anixter International Inc. (NYSE: AXE) today announced that it has entered into a definitive agreement to acquire the Power Solutions segment of HD Supply for $825 million. The acquisition, the largest in Anixter’s history, is expected to result in future tax benefits from acquired U.S. intangible assets with a net present value estimated to be approximately $70 million.

“Power Solutions is a compelling strategic acquisition for Anixter. Consistent with our message that we are sharpening our focus, this transaction will significantly enhance our competitive position in the electrical wire and cable business and further strengthen our customer and supplier value proposition. In addition to transforming our existing utility business into a leading North American distributor to the utility sector, this acquisition will enable us to provide a full line electrical solution to our existing customers and will provide us with broader access to the mid-size electrical construction market,” said Bob Eck, President and Chief Executive Officer of Anixter. “Like Anixter, Power Solutions has built their business on providing complex supply chain services and value added distribution to their customers. We look forward to the talented Power Solutions team joining the Anixter family when the transaction closes. Together, we will offer broader solutions to our respective customers and substantial long-term growth and value creation for all Anixter stakeholders.”

Headquartered in Atlanta, Power Solutions distributes over 200,000 utility, electrical and industrial MRO products to approximately 13,000 customers including investor-owned utilities, public power utilities, electrical contractors and industrial businesses. Operating from a broad geographic footprint of approximately 130 branches in 30 U.S. states and 4 Canadian provinces, Power Solutions reported fiscal 2014 revenue of $1.9 billion and adjusted EBITDA of $79 million.

“After a detailed evaluation, we determined that a sale of our Power Solutions business to Anixter is in the best interests of our Power Solutions associates and HD Supply shareholders,” said Joe DeAngelo, HD Supply Chairman and CEO. “This transformational transaction improves our ability to profitably grow in excess of end market growth estimates and will allow us to further enhance our capital structure.”

This transaction is expected to close near the end of the third quarter of 2015 and will be financed using available cash and additional borrowings.

 

Tagged with , ,

Comment on the story

Your email address will not be published.