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updated: 1/3/2020 8:39 AM

CD&R ups Anixter acquisition bid to $4.3 billion

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  • Private investment firm Clayton, Dubilier & Rice LLC increased its bid for Glenview-based Anixter International to approximately $4.3 billion.

    Private investment firm Clayton, Dubilier & Rice LLC increased its bid for Glenview-based Anixter International to approximately $4.3 billion.
    Photo courtesy Anixter International

 
 

Glenview-based industrial electronics company Anixter International said Thursday it will stick with the acquisition offer from Clayton, Dubilier & Rice LLC after the New York-based private investment firm increased its bid to approximately $4.3 billion.

Anixter officials said the company's board of directors has agreed to the revised offer, which now stands at $93.50 per share in the all-cash deal. The move comes a week after Anixter received a second offer from Pittsburgh-based electronics distribution and services company WESCO International. WESCO's proposal offered Anixter shareholders a cash/stock combination with a combined value of $93.50 per share.

However, Anixter board chairman Sam Zell said Thursday that, after reviewing the offers, the board will back the revised deal with CD&R.

"In evaluating the new proposal from CD&R, the board carefully considered the value and risk profile of WESCO's offer comprising cash, WESCO common stock and a new series of WESCO preferred stock, for which there is no established market or trading price," said Zell, who owns about 9% of the Anixter's stock. "The board has unanimously concluded that CD&R's improved all-cash proposal is superior to WESCO's offer."

The offer is still subject to the approval of Anixter's stockholders and other closing conditions, the company said. That meeting is scheduled for 8:30 a.m. Feb. 4 at Two North Riverside Plaza in Chicago.

CD&R's original offer for Anixter was made Oct. 30, offering a per-share price of $81 in a deal worth $3.8 billion. It has increased its bid twice since the original offer. Anixter's stock has risen 31% since the acquisition bid was first announced.

The deal, if approved by the stockholders, will take the publicly-traded industrial electronics company private. Anixter CEO Bill Galvin and company executives would continue to lead the company.

CD & R manages $28 billion in investments of 86 companies, including electrical and industrial distributors.