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Private Equity Firm Buys 11% of WESCO

In an SEC filing dated July 5, 2020, Leonard Green and Partners acquired 5.7 million shares of WESCO common stock, which makes up about 11.4% of the company. The 13G filing lists the transaction as a “passive” stake in WESCO.

Leonard Green and Partners describes itself as “a leading private equity investment firm founded in 1989 and based in Los Angeles. Our firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, we have invested in over 90 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. We primarily focus on companies providing services, including consumer, business, and healthcare services, as well as retail, distribution, and industrials.” The private equity firm is currently invested in 39 businesses, including healthcare companies Aspen Dental, CHG Healthcare Services, and Exam Works, along with retail chains J Crew, Joann Fabrics, and Lucky Brand.

WESCO completed its transaction to acquire Anixter on June 22, 2020, after outbidding another private equity firm, Clayton, Dubilier & Rice back in January. Leonard Green’s passive stake in WESCO indicates its investing strategy is to hold onto the stock for a long period of time, rather than try to make frequent trades to try and turn a profit.