Anixter agrees to Wesco buyout bid, ditches CD&R

Anixter said its previous agreement to be bought by Clayton, Dubilier & Rice had been terminated.

Under the terms of the deal, Anixter shareholders will receive $70 in cash for each of their shares, plus 0.2397 of Wesco common stock and preferred stock valued at $15.89. Wesco shareholders will own 84% of the combined entity, while Anixer shareholders will own the rest.

Wesco chairman, president and chief executive John J. Engel, said the combination will create "a premier electrical and data communications distribution and supply chain services company".

"With increased scale and complementary capabilities, we will be ideally positioned to digitise our business, expand our extensive services portfolio and supply chain offerings, and deliver solutions to our customers whenever and wherever they need them around the globe," he said.

"Given the enhanced strategic profile and competitiveness of the combined company, we are confident we will deliver improved growth and earnings, and exceptional cash flow generation."

Anixter’s president and CEO, Bill Galvin, said: "This is the result of a very thorough process to determine the value of our company."

The agreement puts an end to a series of bids and counter bids that has seen Wesco and CD&R battle it out for Anixter.