Anixter gets $3.8 billion bid to go private

Equity firm Clayton, Dubilier & Rice is making a bid to acquire Glenview-based industrial electronics company Anixter International, offering a $3.8 billion cash deal that will take the publicly traded company private.

Under the proposal, a CD&R affiliate would acquire all outstanding shares of Anixter common stock for $81 per share, about 13% more than the company's closing stock price Tuesday.

Anixter CEO Bill Galvin and company executives would continue to lead the company, according to a statement from Anixter.

"As a private company, we believe Anixter will have greater flexibility to focus on and accelerate our long-term strategic priorities," Galvin said.

Under the plan, the company will solicit other bids until Dec. 9, after which its stockholders can either vote to accept the CD&R plan or pursue an alternate offer, with an obligation to pay a $45 million breakup fee to CD&R.

Anixter expects to hold a special stockholder meeting "as soon as practicable" after mailing out proxy statements.

Anixter board Chairman Sam Zell, who owns about 9% of company stock, and other stockholders have already entered into a voting agreement with CD&R, according to a company statement.

New York-based CD&R manages $28 billion in investments of 86 companies, including electrical and industrial distributors. The firm does not expect to seek additional financing in the all-cash transaction.

"We look forward to partnering with the outstanding management team, led by Bill Galvin, on initiatives to grow the business and further strengthen its competitive position while maintaining Anixter's distinctive culture grounded in operational excellence, innovation, and an unwavering commitment to the company's employees, customers, and global partners," CD&R Partner Nate Sleeper said.

The deal is expected to close by the end of the first quarter of 2020.