Anixter Says Considers Revised WESCO Proposal

(RTTNews) - Anixter International Inc. (AXE) said that it has received a revised proposal from WESCO International on December 26, 2019 under which Anixter shareholders would receive consideration nominally valued at $93.50 per share. The company said it will carefully review WESCO's proposal in the context of Anixter's existing agreement with Clayton, Dubilier & Rice.

WESCO's latest offer consists of $63.00 in cash, $13.85 in WESCO common stock and $16.65 in face amount of WESCO preferred stock.

As previously announced on December 23, 2019, Anixter entered into an Amended and Restated Agreement and Plan of Merger, whereby a fund sponsored by Clayton, Dubilier & Rice, LLC or "CD&R has agreed to acquire Anixter.

As per the terms of the Amended Merger Agreement with CD&R, Anixter shareholders would receive $86.00 in cash per share and a contingent value right entitling them to an additional $2.50 in cash per share if CD&R, or any fund managed by CD&R, within one year after the closing of the Anixter acquisition, enters into a definitive agreement to acquire WESCO or to sell Anixter to WESCO, which amount would be payable only upon completion of such acquisition or sale.

Anixter said it remains subject to the Amended Merger Agreement and its board has not changed its recommendation in support of the Amended Merger Agreement.