WESCO To Buy Anixter In $4.5 Bln Deal - Quick Facts

(RTTNews) - WESCO International Inc. (WCC) to acquire Anixter International Inc. (AXE) in a transaction valued at about $4.5 billion, the companies said Monday.

Anixter's prior agreement to be acquired by Clayton, Dubilier & Rice, LLC has been terminated, following CD&R's waiver of its matching rights under the agreement. As per the terms of the agreement, each share of Anixter common stock will be converted into the right to receive $70.00 in cash, 0.2397 shares of WESCO common stock and preferred stock consideration valued at $15.89, based on the value of its liquidation preference.

Based on the closing price of WESCO's common stock on January 10, 2020 and the liquidation preference of the WESCO preferred stock consideration, the total consideration represents about $100 per Anixter share.

It is anticipated that WESCO stockholders will own 84%, and Anixter stockholders 16%, of the combined company.

As per the terms of the merger agreement, WESCO may elect to substitute additional cash consideration to reduce the amount of the preferred stock consideration on a dollar-for-dollar basis based on the value of the liquidation preference of the preferred stock consideration.

WESCO and Anixter anticipate to complete the transaction during the second or third quarter of 2020.