Posted January 3, 2020

WESCO submits revised proposal to acquire Anixter

WESCO International has submitted a revised proposal to the board of directors of Anixter International to acquire Anixter for $97.00 per share in cash and stock.

This revised proposal includes $63.00 cash, plus a fixed exchange ratio of 0.2397 shares of WESCO common stock, as in WESCO's prior proposal, plus $19.89 of a newly created class of WESCO perpetual preferred stock. 

Based on the closing price of WESCO's common stock on Jan. 2, 2020, the total consideration translates to $97.00 per share.

"WESCO is uniquely positioned to deliver immediate value to Anixter stockholders and provide the ability to participate in the significant upside potential of a combined organization," said John J. Engel, WESCO's chairman, president and chief executive officer. "Together, we would create a premier electrical and data communications distribution company, with an enhanced strategic profile and competitiveness, generating significant expected synergies and earnings accretion. We continue to strongly believe this transformative combination is in the best interests of both companies' stockholders and that our latest proposal represents a superior company proposal compared to Anixter's current agreement with CD&R."

WESCO had made an initial offer of $90 per Anixter share on Dec. 24 and improved it to $93.50 per Anixter share in cash and stock three days later.

Anixter announced on Jan. 2 that it had received an amended offer from Clayton, Dubilier & Rice of $93.50 per share in cash (from $86.00 per share in cash and a $2.50 contingent value right upon the occurrence of certain events). The transaction is now valued at approximately $4.3 billion.