Rumors persist at WESCO; IPO postponed
By Staff -- Industrial Distribution, 5/1/1998
Pittsburgh, Pa.--WESCO Distribution, Inc. chief executive officer Roy Haley confirms a management-led buyout is an option as the $2.9 billion electrical distributor weighs buyout offers.As Industrial Distribution went to press, Haley said an announcement regarding new ownership was expected around May 1. Numerous buyers have sought out WESCO as it prepared a $300 million public offering, which Haley says has been delayed. Industry sources say a management buyout has emerged as a leading alternative.
"Regardless of what happens going forward with our structure, our managers are big shareholders of this business,'' he said in mid April. "The management is today and will be leading the structuring issues because of the stake we have in the ownership.''
Haley would neither confirm nor deny a report that WESCO has indefinitely postponed the IPO. However, ID's sources say that Merrill Lynch & Co., the lead underwriter in the deal, has postponed the offering.
Haaley said the timetable for completing the IPO "has slipped'' but would not say why. "I have not confirmed what Merrill Lynch has said. I don't know the status of that,'' Haley said.
A partner at the New York investment firm that owns WESCO, Clayton, Dubilier & Rice, did not return telephone calls. CD&R bought WESCO for $340 million in 1994. Since then sales have nearly doubled from $1.6 billion.
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