Tyco To Purchase Anixter?

Rumor is they are trying to acquisition any facts to back this up ?

Match Honeywell/ADI model? Could see that play for sure. Tyco is also most likely one of Anixter's top wire customers for OEM applications.

I have not heard or seen any facts. That's not to say it's true or false.

It would be, on first thought, a little confusing, having a manufacturer / integrator own a distributor but perhaps someone thinks their is value in vertical integration.

Financially speaking, it's probably possible, given that Tyco has a maket valuation of 8 times Anixters (~$16 billion vs $~$2 billion).

consolidating Anixter branches into the Tri-Ed brand would eliminate redundancies that exists between the two. That translates into less operating expense (phycial properties and employees) and better margin. This is something that Anixter could do today but not without damaging morale. If Tyco comes in then its just part of the corporate overhaul.

Tyco SP is struggling to get a channel to sell their CCTV products with the exception of DSC. This makes a lot of sense for them to aquire Anixter.

Here is an article from Goldman regarding Anixter begging to be aquired.

as a side note, it would interesting if IPVM did a Q&A with Goldman about the security industy in general.

Lol at begging but, yes, Anixter has been looking to be acquired for some time and the stock price has declined 35% since March 2014 to ~$65 (after a long run up since 2008 when it was at just $23).

We talk to banks and institutional investors regularly but I doubt they want to comment publicly on things. That said, it's a good idea and I will keep that in mind to see if anyone is open. Thanks!

Article is from 18 months ago. Much has changed.

Like the stock price being down ~37%?

Correct me if I am wrong, but the peak stock price coincided with the height of the speculation that Anixter was to be acquired. So now that the stock price is down $40, Anixter won't be sold?

The "much has changed" comment isn't relative to the rumor of a sale, but to the reality that 18 months in this industry (for Anixter or anyone) is something to be aware of.

In the case of Anixter they bought two companies in 18 months (including Tri-ed) and sold one. The content of the 18 month old article may or may not hold true today--yet I thought it worth pointing out that it is not a current snapshot.

We all know in this day and age that anything can be bought or sold, stock up or stock down.

Agreed, more likely to be sold than before. ;)