Anixter Sells Fasteners Unit For $380 Million

Anixter says the the divestment will give the company a sharper strategic focus in its core Enterprising Cabling & Security Solutions, Electrical, and Electronic Wire & Cable segments.

In early January, reports surfaced that Anixter International, No. 6 on Industrial Distribution's 2014 Big 50 List, put its fasteners division up for sale after unsuccessful attempts to sell the company as a whole. On Thursday, a buyer for the unit was named.

Anixter announced that it has entered into a definitive agreement to sell its OEM Supply -Fasteners segment to American Industrial Partners (AIP) for $380 million in cash, subject to certain post-closing adjustments. The transaction, approved by Anixter’s Board of Directors, is expected to close during the second quarter of 2015.

AIP is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets.

Reports in early January of Anixter's planned sale of the unit expected it to sell for more than $500 million.

The Fasteners segment is a global distributor and manufacturer of highly-engineered fasteners for customers in the heavy truck, power train, luxury automotive, agriculture, construction, recreational vehicles and other verticals. According to Anixter, Fasteners serves customers in 15 countries, and the average relationship among its 10 largest customers exceeds 17 years. The business reported 2014 revenues of $938.5 million and operating profit of $39.1 million.

“This transaction follows significant progress by the Fasteners team in delivering improved operating performance and benefits to all stakeholders,” said Bob Eck, President and Chief Executive Officer of Anixter. “Following the transaction, Anixter will have a sharper strategic focus on our core Enterprise Cabling & Security Solutions (ECS) and Electrical and Electronic Wire & Cable (W&C) segments and additional financial flexibility to build on these strong global platforms through organic investments, as well as strategic acquisitions, allowing us to continue to deliver long-term value to shareholders. For Fasteners, this transaction will provide access to additional operational expertise and financial resources to drive continued growth in its industry.”

Anixter said the Fasteners business includes 73 distribution centers, 12 quality labs and more than 1,900 employees worldwide. Upon closing, Fasteners will continue to be led by its current management team, with Ian Clarke assuming the role of President and Chief Executive Officer of the new company. The company’s headquarters will remain in Glenview, Illinois, and the name of the new company will be announced upon closing.

“We have great respect for Fasteners, which is widely recognized as a leading global OEM supplier,” said Eric Baroyan, Partner at AIP. “With deep, long-standing customer relationships, strong management, a highly customized product portfolio and significant global growth opportunities, Fasteners is well-positioned to accelerate its business performance. We are fully supportive of their strategic plan, and look forward to collaborating with their talented team to build long-term value for customers, suppliers and employees.”

Anixter said AIP has also offered to acquire the portion of the Fasteners business in France that has historically supported Fasteners’ global business.