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WESCO wins over Anixter
Posted on Monday, 13 January 2020 14:50
WESCO International has pipped Clayton, Dubilier & Rice to the post for Anixter International by tabling a board-recommended offer valued at USD 4.50 billion.
The aggregate price of USD 100.00 apiece comprises: USD 70.00 in cash, 0.24 shares of the Pennsylvanian Fortune 500 holding company and a preferred scrip consideration worth at USD 15.89.
Its total offer equates to 9.9x 2019 consensus earnings before interest, tax, depreciation and amortisation (EBITDA), excluding cost-savings, or 6.9x including these additional figures.
At closing, WESCO expects to have pro forma leverage of 4.5x net debt to EBITDA and plans to reduce this to within its long-term target leverage range of 2.0x to 3.5x within 24 months post-close.
The resulting entity is likely to have pro forma 2019 revenue of about USD 17.00 billion and EBITDA of roughly USD 870.00 million.
WESCO will not only be a leading electrical and data communications distributor in North America, but it will also have a presence across some 50 countries.
As the group will have an extensive global reach and wider international exposure, about 12.0 per cent of its top line will come from outside of this region.
The increased scale should support the combined company in accelerating digitisation strategies while providing “a platform for growth in attractive emerging markets”.
Entities associated with Anixter’s chairman, Sam Zell, own 10.8 per cent of Illinois-based communications and security products distributor and intend to vote in favour of the takeover.
Zephyr, the M&A database published by Bureau van Dijk, shows the takeover is one of the largest deals targeting a US company announced globally in 2020 to date.
Yesterday, Woodward and Hexcel announced an all-scrip USD 6.48 billion deal that will create a leading integrated systems provider serving the aerospace and industrial sectors with a combined market capitalisation of USD 13.71 billion.
© Zephus Ltd