Wesco Wins Anixter

By John Honovich and Sean Patton, Published Jan 13, 2020, 04:50pm EST (Info+)

Despite Anixter earlier arguing that Wesco's bid was inferior to CD&R's by nearly 10%, Anixter confirmed that they are taking Wesco's 3.1% nominal share price higher offer.

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** **** ****, ** ******* *** merger *********** ********* *******, *** ********* positive/ ******** ******** ******.

Anixter **********

******* ** *** ** *** ******* distribution ********* ** *** ************ ********, with **** ** ********, **** *,*** employees *** **** $* ******* ** sales ** ******** ********* (***** *********, Infrastructure, ********). *************** ********-******* *********** ***-** ** ****, *** $*** *******, ************ ** ** ******* ** ****.

** *****, **** ******** * ********* including ***-** ***'**** ********' ***** ********* *** **** ** *****.

Wesco **********

***** ** ***** ** **********, ** and **** *** **** ** ******** dealing **** ******* ********* ** *******. Additionally, ***** *** ****** ** ************ divisions, **** ** *** *********** **** strong **** ** **** *****. ** the ** **** **** ** *********:

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** ********* ********** ************** ***/*****, *** *** * *** positive ****, *** **** *** ******* neutral ******* ** *** ** *** standard ************ ** *** ******, **** many *********** ********* **** *** *** use ****.

Wesco ********* ******** ****

**** * ****** ********* ***********, ***** has ***** ***** **** *** **** half-decade, ** **** ******* ********* **** ********* ***********:

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**** ** *** ********** *** ***** the ******* ******** ** *** ******** of ********** / ********** ************. *******, it ** ***** ****** **** *** profit ******* ** ***** *** **** distributors *** **** ****, ****, *.*., Wesco ***** **** **** $* ******* in **** ******* *** **** $*** million ** ****** **** **********.

*************, *******'* ******* ******* *** ******* are **** ***** ** *****'*, ****** with ******* ******* **** **** *** same **** ******, ** ***** *********'* **** **********:

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Saving $*** ******* ********

*** ******** ********* ******** **** ***** is ******** ** **** ******** *****, as***** ******** **************:

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** ***********'* **** (***** ** *********** ****), **** ********** ********** *** **** savings ********** *** ****:

** ****** ** ******** **** $*** million ** *** **** **** ********* and *********** **** **** ****.

** ** ********** ******, ** ****** over $*** ******* ** *** **** cost ********* ** *** *** ** the ***** **** ** *** ******.

*** ******** ******* **** ******* **** over $*** ******* ** **** ********* by **** *****.

**** **'** ******* *** **** *** pointing ** *** **'* ********* ** note ** **** *** ******* ** cost *******

*'** **** **** ********** ******* **** $200 ******* ** ****. *********. *** then ************, ** **'** *********** ** our ******** *******, ** ** ******* that ***** *** **** ***** ******, synergies **** **** *** ** ******* through **** ***********. **'* ***** ***** in *** ******* *** ** ** evaluate ****.

***** **** *****'* ******* *** ** slim (~$*** *******), ****** $*** *******, assuming ** ********** ********, ***** **** a ***** ****** ** ***** ************* and *********.

Cutting ******** *** *****

** **********, **** ********* ******* ********:

*** ******** **** ********* *** ************ and ****** ********* ** **** ***** our *********

************ *** ****** *********, ********* ***** termination ** ****** ** **** *****

Potential ******* **** ***********

******* ********* $*.* ******* ** *********** debt *********** ** ** * **** ** its **** ********* ******. *** ********* ****** ***** **** have * **** ******* ** **** $397 ******* *** ** **** *** $607 ******* ** ****, *** **** merger ***** **** ******* / ***** a ********* *********** ** *********** *** debt **** ****** *****.

Neutral ****** ** ****

***** *** *******'* ************ ******** ** focused ** * ***** ***** ** low-voltage ********, ** ***** ******** ******** are * ******** *****. *** **** clear ********* ** *** **** *********** by ***** *** ******* *****.

*** ****-**** ******** *** ******** *********** could ** **** ***** ** ******* change ** ****** ******* ** *****. We **** ******* ********** ******** ***** Anixter, ************ *** **** *********** *** ***-**** ******* ***********, **********'* *** ******* ***-**** ****** *****.

Execution / *********** ** *********

*** *** ******* ** ***** ** how **** *** *** ********* *** 'merged' / **********. ***** *** ***** acquired ** ****** ** ***** ** Anixter. ******, ** *******, ***** *** Anixter *** ***** *** **** ****. How **** ********* ** **** ** key.

**************, ***** *** ********** ***** ****, saying ****:

**'** *** *** ******** *** ****** and **** *** **** ** *** Anixter, ** *** ******* ***, *** know, **** ****, * ***** ***, complimentary, **** **********, ** ******* ** the ******** ********** ***** ** ******* the ******** *** ************* ****** ********** that **** *********** **********. ** * think ****'* ****** * ******** *********...

* ***** ** **** ** *********** cultural ***** ***** ****** **** *********. And **** *******, ** **** ** engaging **** **** ********** ******* ** help ** **** ****. *** ***** experts **** **** *** **** ** additional ********* *** ********** ********* ** help ** ***** *** ********* ** the ******* *********** **** *** ******** as * *******.

** ** *** **** ****** ***** the *** *******'* ******** *** ********** to ***** ** *** **** *** merger **** ** ********.

Vote / ****

Comments (17)

Sounds like a lot of synergies! At least 7 in the transcript alone!

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FYI Wesco, as long as certain anixter employees are still employed at my local branch, I will do everything I can to buy from other distributors due to them rampantly competing against me.

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My limited experience with Anixter was as negative as possible, so I don’t think Wesco could possibly screw it up any worse. 🤷🏻‍♂️

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If it wasn't for my rep and some relationships, I would not buy from Anixter. Competing against me, poor stock levels, un-knowledgeable staff in some locations. Wesco I'm not sure is any better. They sell directly to the end user and will source about anything I believe. Again, great personal relationships, but as a company, I'll pass.

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I have a feeling this is going to be such a big fail for wesco and the demise of anixter. I hope they have a visionary running this, otherwise Wesco will have to close down as well.

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Common sense would say to balance share holders, customers and employees then you can win. Unfortunately, few big companies are willing or able.

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I've dealt with Wesco (electrical and elevator supply divisions) for several years. It's a solid company with terrific people.

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It’s interesting that there are so many negatives on Anixter for selling to the end user. I don’t disagree, they certainly have a long history on a per office location for pulling that. However, I worked for another manufacturer that only went thru distribution for almost a decade and I can absolutely say that WESCO/CSC went direct to far more end users. It will be interesting to see how these two companies combine culturally.

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There is a number of negative comments and general sentiment to this. What distributors would you recommend if not Wesco or Anixter?

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What distributors would you recommend if not Wesco or Anixter?

Well, for an end-user, these integrators would recommened none ;) That's mostly their point, integrators don't want distributors to sell to end-users.

The challenge comes in is that many end-users want to buy products only so the natural desire is for them to buy from distributors like Wesco or Anixter too, setting up this conflict.

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So the customer is truly the root of all evil

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I think Adi will get a chunk of the buisness.

Smaller companies like ses,ss&si, and Blvs will grow because of there hands on customer approach and relationship.

The import companies such as Lts and savvy and anyone local will also grow. Wescos learning curve for the daily business will take too long.

This will especially happen if they downsize and get rid anixter employees and locations.

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All I read was, "SS&Si ............ will grow because of their hands on customer approach and relationships." Did I miss anything? :)

Thanks Abraham. We see this as an opportunity as well. I hope that the "synergies" (aka branch closures and layoffs) won't cause too much pain for the "folks" but I suspect the best of them will find new opportunities as well.

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Jake you know I also have love for Blvs both you and david go the extra mile for your customers

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I enjoyed meeting David at ISC East this past year. I count any business going to independent distribution as a win and appreciate the dealers who support us.

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Anixter's CEO sent out an email to employees about the deal:

It does not say much of anything specific outside they are working on a plan, e.g.:

Bringing together two complex companies requires a very thoughtful integration plan. We will work with John [Wesco CEO] and other WESCO leaders to establish an integration team which will comprise members from both companies. The focus of this process will be ensuring we combine our two great companies in a manner that builds on our collective capabilities and past successes.

Net/net, between the time it takes to close this deal and implement the integration, this could take years until it's done.

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The acquirer staff always wins!

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