Wesco / Anixter Financial Performance Analyzed
Three years ago, Wesco acquired Anixter, transforming the distributor into a major security products distribution, combining Wesco / CSC's smaller security unit with Anixter's large one, creating a potentially stronger competitor to ADI.
***, * ***** **, *** *** combination ******* ********, **** ******** *****'* most ****** **********, **********' ******** ***** the ***********, *** *** *******'* ***** price ***** *** ****.
**********
***** ****** ********** $*.* ******* **** ******* *********** against **&* ** ***** ****. **** companies *** ~$* ******* ** ****** revenue ** *** **** ** *** merger. ** *** **** ** *** deal, ***** ********* **** $*** ******* run **** **** ********* **** *** deal:
***, *** ******* ** ****** **** far ******** ***** *** ***********, ******** in ********* ****-******.
*** ******** ******* *** ****** *** in ******* *********** ************ ******, ******* **% ** *** ******** votes, **** ****** ***.
Revenue ****** *** Synergies ***** *** *****
***** ******** $** ******* ** **** revenue, **% *** ******, ***** ** quite *********** *** *** ************ ****** and *** *******'* ******* ***** ****. Equally ***********, ** ********* *** ****** (profit) ****** ** *.* ********** ****** up ** *.*%:
*** ******* ********** *** ******** ** the ****** ****** *****, *******, *******, and **** ***** *** **** *** done:
*** ******* **** **** ****** ******** its *********** *** ********* ******* ** follows:
** **, ** ********** $*** ******* of *****-**** *******, ******** *** ********** total ** **** **** $*** ******* for *** **** *** **** $*.* billion ***** *** ********* ** *** program.
Security ******* ************
*** *****'* ************** & ******** ********* business *******, *** ******* ******** $* billion ** ***** ** ****, * 9.4% ******** ***** ****. ** **** "new ************ *** ** *********** ** technologies ** ******** ** ****** ****** for ******* ****** ***********" ***** *** security ******** ******:
Stock *********** ***** *** *****
*****'* ***** *** ******* ***** ****** Anixter ****** ** **** ***-**** ****** and ********* *************.******** ** *********** *** **** * mature ******* ********** ***** *** ****** have ********* **** *** **** *** years:
*****, *** ******* *** **** **** an $* ******* ****** **************, ** from ***** $* ******* ****** *** deal. **** ***** **** *** ******* at * *****-**-***** ***** ** ***** 0.5x *** * *****-**-******** ***** ** 10x
******* **** ******, ***** ***** **** in *** **** ****** ******** **** that *** ***** ** ******* *** below *********** *** *** *******'* ********* value, *** ** ** ********* ********* growth ** *** ******:
**** ** ********** ** ***** *** series ** ******-******* ******* *** ******** -- *** *** ******* ******** ******** momentum ******. ** **** ******* **** greater ********** **** **** ** * future ** ********* ****** *** ****** outperformance.
*******
******* *******, ***** **** ** ** increasing *** *****-******* ***** ****** ** $1.6 ******* ** *** ********* ** months ** *** ******* *******. **** is * ***** ******* **** *** company's ******** *********** **** *** **** was ****** ** ****:
** *** **** ******* ** **** up ******* **** ******* ** *** end ** **** ****, ***** **** it ******* ** "************* ********** *** expectations *** ** *** **** *** transaction ******."
*** ******* ******* ********* *** ******** in ********** *********, ******:
**’* ******* *** ** ** *** single *******, **** *********** ***** ******** lever ** ******* ***** *** ********* together.