Anixter in Talks with 2nd Potential Buyer

Anixter

Security and electrical products distributor Anixter — which announced Oct. 29 that it had agreed to be privately acquired for $3.8 billion by investment firm Clayton, Dublier & Rice (CD&R) — is apparently still considering potential alternative suitors.

In an email to employees shared in an 8-K with the Securities and Exchange Commission filed Dec. 4, Anixter president and CEO Bill Galvin said there “was a go-shop period” where the company could solicit potential interested parties to come forward and make a superior proposal to purchase Aniter. And during that time, the company indeed received interest from another party.

Galvin didn’t disclose the name of the second party, but said that Anixter is engaged in continuing discussions with them.

“We cannot guarantee that the discussions will result in a superior proposal,” Galvin said in the email. “At this time, we still have a signed agreement in place with CD&R and are working to consummate the transaction under that agreement.”

Galvin noted that CD&R has raised its purchase price by $1.50 per share to a current offer of $82.50 per share. He acknowledged that the news of the second potential buyer may create some internal and external speculation and stressed the importance of the company speaking “with one Anixter voice.”

Glenview, IL-based Anixter was a mainstay on Industrial Distribution's annual Big 50 List until selling off its OEM Fasteners division in 2015. The company describes itself as a global distributor of network & security solutions, electrical & electronic solutions and utility power solutions. The company stated Oct. 29 that it has approximately 130,000 customers; nearly 600,000 products; more than $1.0 billion in inventory; 316 warehouse/branch locations with more than 9.0 million square feet of space; and locations in more than 300 cities and approximately 50 countries.

More in Mergers & Acquisitions