WESCO International Inc., a Pittsburgh-headquartered provider of business-to-business distribution, logistics services and supply chain solutions, has completed its merger with Anixter International Inc., creating a global B2B distribution and supply chain solutions company.
Upon completion, Anixter became a wholly owned subsidiary of WESCO International.
Anixter’s shares ceased trading prior to the market open on June 22, 2020, and each share of Anixter common stock has been converted into the right to receive $72.82 in cash (without interest), 0.2397 shares of WESCO common stock, and preferred stock consideration consisting of 0.6356 depositary shares. Total consideration per share of Anixter common stock was about $97.93.
The combined company generated pro forma 2019 revenue of more than $17 billion and is a leading electrical and data communications distributor in North America. The increased scale enables the combined company to accelerate digitization strategies and provides a platform for growth in attractive international markets.
WESCO expects to realize annualized run-rate cost synergies of over $200 million by the end of year three through efficiencies in corporate and regional overhead, optimization of the branch and distribution center network, and productivity in field operations and the supply chain. In addition, WESCO expects incremental sales growth opportunities to result by cross-selling the companies’ complementary product and services offerings to an expanded customer base and capitalizing on the enhanced capabilities across both networks.
WESCO will utilize the strength of the combined company’s cash flows, including significant synergies, to reduce its leverage quickly and expects to be within its long-term target leverage range of 2x to 3.5x within 36 months.
Barclays served as financial adviser to WESCO, and Wachtell, Lipton, Rosen & Katz served as legal adviser.
Centerview Partners LLC served as lead financial advisor and Wells Fargo Securities LLC also served as financial adviser to Anixter, and Sidley Austin LLP served as legal adviser.