WESCO may be sold; stock offering still planned
By Staff -- Industrial Distribution, 4/1/1998
Pittsburgh, Pa.--Though still preparing for a $300 million initial public offering, sources close to WESCO Distribution say the company might be sold before that process is complete.The buyer -- reported to be a French company -- is said to be offering as much as $2 billion for the electrical distributor. The unidentified suitor initiated talks with WESCO in late February, according to a report in the Pittsburgh Business Times.
While sources also say WESCO has dropped the ball on the IPO, files with the securities and exchange commission indicate the process is still in the works. In early March, Jim Piraino, WESCO's vice president of national accounts and marketing, told the Pittsburgh Business Times that the company was still preparing for the IPO, which was filed on Dec. 24. However, he didn't rule out that a sale of WESCO could be in the works. "That could be, but I can't confirm it," he told PBT. "With our parent company, that's always possible."
WESCO, formerly Westinghouse Electric Supply Co., was sold to New York investment firm Clayton, Dubilier & Rice in 1994 for $340 million. Clayton, Dubilier referred all inquiries regarding the possible buyout to WESCO. At press time, WESCO had not returned calls for this article. However, Clayton, Dubilier isn't known for holding its investments long-term, and may feel WESCO is ripe for selling after making a series of acquisitions.
The company has been on the acquisition trail since 1995, completing 11 acquisitions and adding more than $500 million in sales. With revenues of $2.3 billion in 1996 , WESCO is one of the largest electrical distributorships in the country. The firm ranked No. 3 on ID's Top 100 Distributors of 1997 (ID, June, 1997).
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