International. Wesco announced that it will acquire Anixter in a transaction valued at approximately $4.5 billion. Wesco International, Inc. is a provider of electrical, industrial and communications MRO and OEM products, building materials, advanced supply chain management and logistics services.
Last year, Anixter's previous agreement to be acquired by Clayton, Dubilier & Rice, LLC ("CD&R") had been announced and terminated following CD&R's waiver of its equivalent rights under the agreement.
Pursuant to the terms made public, each share of Anixter common stock will become the right to receive $70.00 in cash (subject to increase as described below), 0.2397 Wesco shares and preferred stock valued at $15.89, based on the value of your settlement preference.
Based on the closing price of Wesco's common stock on January 10, 2020 and the settlement preference of Wesco's preferred stock consideration, the total consideration represents approximately $100 per Anixter share, giving effect to the downside protection described below.
Based on the structure of the transaction and the number of common shares of Wesco and Anixter currently outstanding, it is anticipated that Wesco shareholders will own 84% and Anixter shareholders 16% of the combined company.
