Chatsworth, Calif. — Pentacon, Inc. announced an agreement to sell its assets to Skokie, Ill.-based Anixter International, Inc., and filed for bankruptcy protection under Chapter 11 in the United States Bankruptcy Court for the Southern District of Texas.

During an interview following the May 24 announcement, Pentacon vice president and controller James Jackson said Anixter intends to keep Pentacon's management intact and for the company to operate as a separate entity.

"Currently, we are working through the Chapter 11 process which will take from 90 to 120 days, after which, we hope to successfully close with Anixter," said Jackson.

He noted that Anixter's customer base is different from Pentacon's, yet there are many similarities. Anxiter, an international distributor of wire, cable and connectors, shares a large number of OEM customers, including Boeing, Co. and Harley Davidson, Inc., with Pentacon, a distributor of fasteners and components.

"This presents significant opportunities for synergy," said Jackson. "It provides a broader array of products to our mutual customers while offering diversification of our businesses."

Jackson said this plan is superior to previously announced restructuring plans because it offers enhanced opportunities due to the backing provided by Anixter.

"The management and employees look forward to the opportunity to work with Anixter," said Jackson. "We believe it is in our best interest and provides the best return for all stakeholders."

Anixter CFO and senior vice president of finance Dennis Letham said the Pentacon purchase will offer customers greater purchasing efficiencies by offering greater one-stop shopping opportunities.

"Pentacon has a strong operating history despite becoming over-leveraged due to its mergers in the late 1990s," said Letham. "It will operate as a stand-alone operating unit that will leverage cross-selling opportunities for both companies."