Anixter Resisting Takeover From Competitor, Bidding War Emerges, Wesco Wins
Mega distributor Anixter is going to be acquired but by whom?
Initially, Anixter planned to go private, being bought by a private equity firm. Now, a new bidder, Wesco, has come along that has topped the private equity's firm price. But Anixter is resisting so far.
In this note, we examine what is happening, who the competitor may be (ADI/Resideo, Ingram Micro, TechData, Rexel, Wesco, etc.) and how this may impact the future of the company.
Update January 2nd and 3rd: We have added coverage on the increased rounds of bidding between Wesco and CD&R.
Executive *******
- *** ********* ***** (***** *) "** a **********" ** ******* *** *** offered * ******** ** $** *** share. ***** * ******* ** ** interested ***** ****** *** "**-**** ******" ********* ******* ****** ******&*'* ********** *** ******* ** $** *** share.
- *** ******** ******** ***** ($**) ***'* much ****** **** *** ******* ***** price ** $** *** ** *******'* relatively **** ***** ****** ***********, **** Anixter's ***** ********* *** ********* *******: "the **** **** *** ******* ****** stock ** ****** ******, *** **** that *** ***** ** *** ******* common ***** *** *** ********* ************ in *** *********** ** *** *******’* business, *** *** *******’* ********* *********** and *** ***** ********** **** *** Company’s ******* ** **** **** ***********, including ***** ********* ** *** *******’* SEC *******." *******'* ***** **** ******** "uncertainties *** ********** ****** *** ******* and *** ********, ********* *** *******’* Innovation *** ******** ************** **********."
- ** *** ****** *******, "*** ******* [Anixter] **** ***** ** ** * publicly ****** ******* *** **** ****** a ****** ***** ********** ** ******."
- ************ **** ***** * *** ******* and ******* ** *******. "** ** the **** ** **** *********** ***** statement, *** ******* ** ******* ** continuing *********** **** ***** *. ***** can ** ** ********* ** ********* that *** *********** **** ***** * will ****** ** * ******** ******* proposal."
- **********, *******'* *********** ****** *%** *** **** ** * ********* takeover ** $** (*****, ************* ****** than **&*'* $** *****).
- ****** *** ******* **&* ************, ******* billionaire *** ****-***** ** ******* *** Zell **** ** ****'* ********* **** the ****'* ****** ***********, ****** *******'* "common ***** ** ******-****** ***, ******* numerous ******* **** *** **** ******* years ** ******** ********* ** *******, volume *** *** ********* ************, (**) the ***** ** *** ******* ****** stock *** *** ********* ************* *************** six ******** ******** ** ******** *******".
Competitor ********
******: ******* *** ********* ***** ** the ********** *** ***** ** ******* them.
*** / ******* *** ****** ***** are ****** ********* *** *** ********** here.******* *** *** ****** ************ ****** ** *** *** *******. Ingram ***** ** ** *****,***** ** ***** ********** ************ ***, ** ** ******** ** ** able ** *** **** * ********.
******** *** ***** ***** ** *** competitor ****** *** ********. **** *** publicly ****** ********* *** ** ~$* billion *** ~$*.* ******* ****** ***************, both *** *** ****** ** *** such * **** *** *** ~$* billion *******.
******: ****, ***** ** * ***********. They *** *** * ********-****** ********** of *******, ****** **** * ******* than ******* ****** ************** ** ~$*.* billion, ***** ***** **** **** * deal ******.
Why ******?
******* **** *** ******* *** ** does *** ****** **** *** ****** offer **** ***** *, ****** *** hypothesis ** **** ********** ****** ***** the ******** ***** ** **** ************ for **** ****-****. ********** ****** **** *** * *********** track ******** ********* *** ********* ************. *** Anixter's ********** ****, **** ***** ** opportunity ** ********** ******* *** ******** and * ********* ****** ****** ****. By ********, ** **** *** ******** by ***** *, *** ******* ******** would ** ** ******* *** ******** entity *** ********* **** ** *** existing **********.
*******
***** ** ** *** ******* *** the ********** **, ** ** ******* what ***** ****** ** **** *****. However, ******* ***** ******* **** *** PE **** ***** ****** **** ** a ****** **** ** ******** * stronger *********** *****.
UPDATE *** ****: **** *** ******
* **** **** **&*, *** ******* equity **** ** *** ******,** ******* *** ************* **&* *** ***** ***** ***** price *** ******** *********** * ***** to ************ ** **&* ***** ******* to ***** ** ******** ***** ** the ********* **** ***** *** **** is ******.
** **********, *** **** ** *** backing *** **&* **** *** * vote ** ******** **** ** ***** the ****.
*************, *** ************ **** **** **** CD&R ***** ** **** *** ****** and *** *** ***** ** *********** with ******* *** **** ***** *******:
** **** **** ******* ** **&* that ** *** **** * ***** financed ******** ** ***** ** ******* all ** *** *********** ****** ** WESCO *** **** *** ***** ** Directors ** ***** *** ********** **** the ******** **** *** **** * basis *** *********** ** **** ****.
UPDATE *** ***: **&* ****** **** ***** *********** ***** ********
**&* *** *** ****** *** ***** to $**.**, ******** *****'* *** **** ***** but ********* ** ** ********* ** all ****. ******* *** ******** ** explaining:
*** ***** ********* ********** *** ***** and **** ******* ** *****’* ***** comprising ****, ***** ****** ***** *** a *** ****** ** ***** ********* stock, *** ***** ***** ** ** established ****** ** ******* *****. *** Board *** *********** ********* **** **&*’* improved ***-**** ******** ** ******** ** WESCO’s *****
*** ******* ** ****** **** *** Wesco *** ****. **** ***** *** to ***** ** $***, ***. *** given *****'* ******** **** *** *********, they *** ******** ** ** **** to ******* ****.
*** ***** *** ***** **** ***, in *** *****. ***** ******* ****** CD&R ** ******** *** ***** **** by **% (**** $** ** $**.** per *****). **** ***** **** ***** CD&R's ******* ** ***** ********** *** potentially *** ****** *** *******'* ********** in ***** *******.
UPDATE *** ***: ***** *** ******, ********
***** ** *** ****** **, ********** their ***** **** $**.** ** $**.**,****** ***** *****:
*****'* ******* ******** ** *** **** proposal **** ****** ******* ************ *** ability ** *********** ** *** ******** of *** ***********, ********* *** ********* value ********.
**** ** ****, ****** ******* **&* would **** ******* *******, ******* **** current ****** ************ ***** *** **** any ****** **** *******'* ****-****** ******. On *** ***** ****, ***** ***** downside **** ** ***** ***** ** more ******* **** **% ** ***** offer ***** ** ******* *** ****** stock *** ********* ********* *****. ** for *** ******, ******* ************ ***** take *** ******** **** *** **&* deal *** ****** ** ** *** number ** ***** ******** ****** ******.
** *******'* ******** ******** *****, ** do *** ***** *.*% ** ****** of * *******, ***** *** ***** of *** ***** ***.
UPDATE: *** ***: ******* ********, **** ***** $*** ********
********* ***** ******** ********,******* *** *** ******** ************ *****'* $*** ***** ***** ** a "******** ******* ********" **** **&* $97 ***-**** ***.
** ** *** ****, ******. "**&* has *** ****** *** *** **** five ******** **** ** ********* ** amendment ** **** ********* ** **** WESCO’s ***** **** ** ****** ** a “******** ******* ********.”
*** ***** ** ******* *** ******** about **&*'* ******** ***** ***** ****** 10% **** *** **** ******* ***** from ***** *** **** ** * reversal **** ***** ****** ***** **** days ***.
UPDATE: *** ****: ***** ****
** ******* ******* ******* ******* **** Wesco's *** *** ******** ** **&*'* by ****** **%, ************ ********* **** **** *** ****** Wesco's*.*% ******* ***** ***** ****** *****.
** *** ****** **** *** *** CD&R ****** **** ** ***** ********* with ******* ******** ******* ** *** CD&R $*** ******* ** **** *** Wesco ****, ***** ***** ** ****** in ******** ** *** ***** *** Anixter.
** **** ******* * ******** ****** analyzing *** *** ****** ** ****.
** ** **********, * ***** **** Anixter **** ***** ** ********** ** you **** ** ********.
****** ***** **** ** ***** * better *********** *** **** ** ***** an **********.
** ***...
*** *******:******* *** **** ***** ********,******* ***** ******* ** *** *****
** ********, * **** *** ***** of ** **** ****** ******** (*.*., 2018 / ****). ****** **** ******** to *****?
**** **** ******* ****** ***** ****** again. ***** ***** ****'* ** ********* we **** **** ****** ** **** end **** *** ***** *** *** their *** ******** ********. *** *** have * ******** ****** ****** ** get ******** *** ***** ** * local ****** **** ******* *** **** business. *** ******** ****** **** ** whatever ** *** *** ***** **** the ***** ******, ** ****** *** cost. ***** *** ***** * ***** directly.
***** *** ******* * *** *** ready ** *** **** ** ***** the ******* *****. **'* **** * matter ** ****.
**** *** ****** ** ** ****. We **** * ***** ******** **** we ****** **** **. ********** ******** the *** ** ************ ******* ** integrators *** ******* ********* **** **** couldn't *****. *** ****'* (*** **** coming) *** ******. ********* *** ***** brought ******* ***** $**** ** **** sales.
**** ****, ** *** ******* *** Greg ***** **** ** ** *** way *** ** **** **** ******** my *** ***** *** ** **** said **** *** * **** **** ago.
* ******* *** ***** **** ** Northern *****/***-** *** ** ******** ***? And *** *** ***** ** ** ruin *** *****? ***... ***********
**** *** *******: "*** / ******* and ****** ***** *** ****** ********* not *** ********** ****.******* *** *** ****** ************ ****** ** *** *** *******."
** *** ** *** ******* ******** here?
** ****
* **** ***** ** ........
* ** ***** *
*********
***, *** *** *** ****** ** take ********* *** **** *****, *** *** ***** *******...
******: ****, ***** ** * ***********. They *** *** * ********-****** ********** of *******, ****** **** * ******* than ******* ****** ************** ** ~$*.* billion, ***** ***** **** **** * deal ******.
**** **** ** ** ** ******** by ****** ****** **********. ******* ****’** wrap ** ******* ** ****?
****, ******! * ****** *** **** Data / ****** ****.**** ********* * ***** ********* *** ***** *** **** **** take **** **** *******.
****,***************** ******* *** ***** ** ***** A.
* ******, ** ****** ****, ** the ****** ** ******** ************ *********** of ***-** *** ******** ***** ** years ***?
* ****** *** * **** ***** found ****** ** ******* *******.
* *** **** ** * **** friend ** **** *** ***** ** Anixter **** ** ******* ******** **** in ******* **** **** **** "****** me".
**** ******* ***** **** *** **** followed ** ******* ******** ** ****** with ****** ******* *** ******* *** major ******** ***** *******.
******* **** **** * ****** ** each ************ * ******** **** ******* that ****** ******* **** **** ** the ********* ******** ** ******** ** this ********** ****** *** **** **** are *** ** **** ** ** any ******.
*********** *** ** ****** *** ** the ************* **** *** ******** ******** letter, ** ***** ** ** * won **** ****** *** *** *** will **** **.
*** ****** *** *** *** * copy ** **** ******? ****** ****-***********…
* **** *** ******, *** *** it *** **** ** **** *********** tone.
******* **** ********* ** *******, ******* & ****
******* ** ** ********* ******** *** $3.8 ******* | ********** ************">******* ** ** ********* ******** *** $3.8 ******* | ********** ************
***** ******* *** **** ***** "**** stabbing" * ***** **** ****** *********.
******* **** ********* ** *******, ******* & ****
** *******, **** **** **** **** month ******* ** ****** ******* ***** emerge ***** *** ******* ****** **** made ***** ****. *******, ** ******* has *** ********, * ****** ****** has ******* (********** ***** '*') ** the **** **** *** ******* ****** firm ** ** *****.
*** *******. ** ****** ****** ** me **** ***** **, ** ***** certain **** *** ** ** ** good.
*'* ********* ** *** ********* ******* as * ********* ********. $*.** ** revenue *** ****. **** ******* ** some ****** (******, *** **** "******" ones). ** ***** ******** ** * complimentary ***.
******* ** *** ******** ****** *** Anixter **** *** ******* ****** ** buy **** **.
*****, *** **** **** *** * newsletter ******* **** **&* ********* *******:
**'* * *** *******, *** *** unsurprising, **** **** *** *** ****** / ** * *** ****** ** this.
*******'* *** **** ** *** ***** to *********, ******** **** ***** *'* $** offer ** ******** ** **&*'* $**.**:
****** *** **-**** ******, ** *** receive ******** ****another *****. While we cannot disclose the name of the interested party, we are engaged ** ********** *********** with the interested party. We cannot ********* **** *** *********** **** ****** ** * ******** ********. At this time, we still have a signed agreement in place with CD&R and are working to consummate the transaction under that agreement. As you may have seen, we previously announced that CD&R raised its purchase price by $1.50 per share to $82.50 per share. [Emphasis Added]
$** > $**.**...
** ********, ***** ** *** ****** the **** *************, *** ** ** going ** ** ***** ** **** down **** *****. *** *** ************, it **** *** ****** ** ******* management's ****** ** ****** **** **&*, if *** ***** ** ****.
*** * ***********,* *** **** *** ******** ** investigation **** *******'****** ******** ** *** **&* ****:
****** ***** & ****** ** ********* that *******’* ***** ** ********* ******* an ****** ******* *** ********** ****** to ** ********** **** *****. ***********, the **** ** ************* *** ******** aspects ** *** **** *** ** committed ** ******** *** **** ****** possible *** ******* ************
***/***, ******, **&* ******* ** ***** Party *'* *****, ******* *** ** sued.
*** *** ****** ** ********* *** deal ** ** **** ** *** $90 *****, *** $**.**, ** *** stock ***** ******** *****:
**** **** ******** *** ******* **********, CD&R ****** ***** ***.
** **’* *** ******* ****?
********* ****** ****'* **** ******** ****** this ***********. **** ***** ** * game ******* *** *** ********'* ************ segment. ****, ****** *** ***** *** distribution ******* ** *** ***** **** need *******'*; *******, ****** ***** ***** of ******* ** ** ********** ************ site ** * *** ********* **** shipping ***** ***** ** *******'* *****, and ******* *** **** ****** ************* in **** *******.
* **** **** **&*, *** ******* equity **** ** *** ******,** ******* *** ************* **&* *** ***** ***** ***** price *** ******** *********** * ***** to ************ ** **&* ***** ******* to ***** ** ******** ***** ** the ********* **** ***** *** **** is ******.
** **********, *** **** ** *** backing *** **&* **** *** * vote ** ******** **** ** ***** the ****.
*************, *** ************ **** **** **** CD&R ***** ** **** *** ****** and *** *** ***** ** *********** with ******* *** **** ***** *******:
** **** **** ******* ** **&* that ** *** **** * ***** financed ******** ** ***** ** ******* all ** *** *********** ****** ** WESCO *** **** *** ***** ** Directors ** ***** *** ********** **** the ******** **** *** **** * basis *** *********** ** **** ****.
***********, ***** ** *** ****** **. Now,***** *** **** **************** ***** ***** *** ******* ** at $** *** *****.
***** *******'* ***** ******* *** *** before *** ****'* *******, ** ** not ***** ** ***** *** **** CD&R ****** **** ** ***** *** for *******.
******:**&* *** *** ****** *** ***** to $**.**, ******** *****'* *** **** ***** but ********* ** ** ********* ** all ****. ******* *** ******** ** explaining:
*** ***** ********* ********** *** ***** and **** ******* ** *****’* ***** comprising ****, ***** ****** ***** *** a *** ****** ** ***** ********* stock, *** ***** ***** ** ** established ****** ** ******* *****. *** Board *** *********** ********* **** **&*’* improved ***-**** ******** ** ******** ** WESCO’s *****
*** ******* ** ****** **** *** Wesco *** ****. **** ***** *** to ***** ** $***, ***. *** given *****'* ******** **** *** *********, they *** ******** ** ** **** to ******* ****.
*** ***** *** ***** **** ***, in *** *****. ***** ******* ****** CD&R ** ******** *** ***** **** by **% (**** $** ** $**.** per *****). **** ***** **** ***** CD&R's ******* ** ***** ********** *** potentially *** ****** *** *******'* ********** in ***** *******.
**** ***** **** ***** **&*'* ******* on ***** ********** *** *********** *** upside *** *******'* ********** ** ***** private.
***** **** *** *****'* ******** *** along? ***** *** ****** **** **** and ******* ********** **** **** *** years ** ***** **** *** **** that **&* *** **** ** ******** to **** *** ********. * **** tactic ** *** *** ***** **** competitor.
UPDATE *** ***: ***** *** ******, ********
***** ** *** ****** **, ********** their ***** **** $**.** ** $**.**,****** ***** *****:
*****'* ******* ******** ** *** **** proposal **** ****** ******* ************ *** ability ** *********** ** *** ******** of *** ***********, ********* *** ********* value ********.
**** ** ****, ****** ******* **&* would **** ******* *******, ******* **** current ****** ************ ***** *** **** any ****** **** *******'* ****-****** ******. On *** ***** ****, ***** ***** downside **** ** ***** ***** ** more ******* **** **% ** ** based ** ******* *** ****** ***** and ********* ********* *****. ** *** the ******, ******* ************ ***** **** the ******** **** *** **&* **** and ****** ** ** *** ****** of ***** ******** ****** ******.
** *******'* ******** ******** *****, ** do *** ***** *.*% ** ****** of * *******, ***** *** ***** of *** ***** ***.
*** ******* ********* ************* ***** ******** ******** *** *******.
***********, ** ******* **&* ******* ** buy ***** *** * **% *******:
*** ***** ******** ** ***** *** $68 *** *****, ***** *********** ** approximately **% ******* ******* ** *** price ** ***** ****** ** *** close ** *.*. ********* ******* ** December *, ****.
** **** ******** * ******* **** by **** *********** ** *** *********** process **** *****.
** **, ******* ****** **** *****'* nominal ***** ** ******** ***** **% less ** **** *****, ** *** excerpt ***** *****:
***** ******, ***** *** ***** ****** their ***** *** *******'* ********** ***** remains, **** ***** **** * ********** nominal ****** *** **** ***** ** inferior ** **&*'* ***-**** *****.
******* ***** ** ****, * **** serious ******** *** *** **** ** Inner ***** *** **'* ******** ***** Anixter ****** **** ****.
* **** ******* ******** *** *** fate ** ***** *****
**** ******** ** *** ****? *** you ********* #**?
***** ***** *** * ***** ***** of ********. ***** *********** **** ******* they **** *********** *** ********** ************.
**** ** ** **** ********* ** Anixter's ****** ** ** *** *** sure **** ***** ***** **** *** IR. *** *** **** ** ***** acquisition *** ******* *** *** ** for **. ***** **** **** ****** rumours ****** **** ******* *** ****** to **** ********* **** ***** *******.
** ***** **** **** **** ******** that *********** ******'* ***** ** *** same. *** ******, *** ******* *** etc.
*** *** *** ****'* **** ***** on **** **** ******** *** *** we're ******* ** *********** ******* ********* change *** **** ** *** *******, potentially **** ***** *** *** *** value ** ****** ** ********* * new ******* *** **** ** ***** out ** ******* *****.
******: ********* ***** ******** ********,******* *** *** ******** ************ *****'* $*** ***** ***** ** a "******** ******* ********" **** **&* $** all-cash ***.
** ** *** ****, ******. "**&* *** *** ****** *** *** next **** ******** **** ** ********* an ********* ** **** ********* ** that *****’* ***** **** ** ****** be * “******** ******* ********.”
*** ***** ** ******* *** ******** about **&*'* ******** ***** ***** ****** 10% **** *** **** ******* ***** from ***** *** **** ** * reversal **** ***** ****** ***** **** days ***.
UPDATE: *** ****: ***** ****
** ******* ******* ******* ******* **** Wesco's *** *** ******** ** **&*'* by ****** **%, ************ ********* **** **** *** ****** Wesco's*.*% ******* ***** ***** ****** *****.
** *** ****** **** *** *** CD&R ****** **** ** ***** ********* with ******* ******** ******* ** *** CD&R $*** ******* ** **** *** Wesco ****, ***** ***** ** ****** in ******** ** *** ***** *** Anixter.
** **** ******* * ******** ****** analyzing *** *** ****** ** ****.
* ***** **** *** ******* ***** Anixter ****, ****** ***** **** ** being * ****** *********** *** **** on ***** ** **********.