Anixter Wesco Merger Agreement

After months of speculation, it has finally been announced that Anixter International and Wesco International have entered into a definitive merger agreement. The two electrical equipment companies, which are both based in the United States, are expected to combine their operations in a deal worth approximately $4.5 billion.

This merger is set to create one of the largest electrical equipment distributors in the world, with a combined revenue of over $17 billion. The move has been seen as a strategic one, as it will allow the two companies to leverage their strengths and expand their business offerings.

The agreement stipulates that Anixter shareholders will receive $72.82 per share in cash and 0.2397 shares of Wesco common stock for each share of Anixter common stock they own. This represents a premium of approximately 13% over Anixter`s closing share price on October 28, 2019.

The merger is also expected to generate significant cost synergies, which are estimated to be around $200 million. These savings will be achieved through the consolidation of overlapping operations and the elimination of redundancies.

Both Anixter and Wesco have expressed their excitement about the merger, with Anixter CEO Bill Galvin stating that “this transaction is a testament to the tremendous value that our employees have created over many years.” Wesco CEO John Engel added that “we are excited to combine our complementary businesses to create a premier electrical and data communications distribution and supply chain services company.”

The Anixter-Wesco merger is subject to approval by both companies` shareholders as well as regulatory approval. The deal is expected to be completed in the second or third quarter of 2020, with the combined company listing on the New York Stock Exchange under the ticker symbol “WESCO.”

The Anixter-Wesco merger is a significant development in the electrical equipment industry, and it will be interesting to see how the combined company performs in the years to come. As both companies have a strong focus on customer service and innovation, it is likely that the merger will lead to a more competitive and dynamic marketplace for customers in this space.

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