Anixter International announced that it has completed the acquisition of the Power Solutions segment of HD Supply for US$825 million, subject to customary post-closing working capital and other customary adjustments. Power Solutions reported fiscal 2014 revenue of $1.9 billion and adjusted EBITDA of $79 million.
Anixter International announced that it has completed the acquisition of the Power Solutions segment of HD Supply for US$825 million, subject to customary post-closing working capital and other customary adjustments. Power Solutions reported fiscal 2014 revenue of $1.9 billion and adjusted EBITDA of $79 million.
The acquisition, which is the largest in Anixter's history, is expected to be accretive to earnings by approximately $0.6 - $0.7 in the first full year of operation, exclusive of transaction and one-time integration expenses.
"Power Solutions is a compelling strategic acquisition for Anixter, significantly enhancing our competitive position in the electrical wire and cable business and further strengthening our customer and supplier value proposition. In addition to transforming our existing utility business into a leading North American distributor to the utility sector, this acquisition will enable us to provide a full line electrical solution to our existing customers and will provide us with broader access to the mid-size electrical construction market," said Bob Eck, President and Chief Executive Officer of Anixter. "Like Anixter, Power Solutions has built their business on providing complex supply chain services and value added distribution to their customers. We look forward to combining the talented Power Solutions team within the Anixter family. Together we will provide broader solutions to our respective customers and substantial long-term growth and value creation for all Anixter stakeholders."
"We are excited to have access to Anixter's broad portfolio of products, services and technical expertise which will allow us to further expand our customer offerings,"
stated John Tisera, President of Power Solutions. "The strategic rationale of this combination is strengthened by our shared culture of partnering with both our customers and world-class suppliers to bring value to their businesses."
"This acquisition combined with the September 2014 acquisition of Tri-Ed and the June 2015 sale of our OEM – Supply Fasteners segment completes a transformation of our global platform at this time and results in a portfolio that is well-positioned for substantial and sustainable long term growth," said Ted Dosch, Executive Vice President and Chief Financial Officer. "With our attention now focused on the successful integration of these businesses and maximizing their synergistic value, we expect to generate significant free cash flow to support our balanced capital allocation strategy, including a return to our long term target of 45 to 50 percent debt-to-total capital ratio within the short to medium term."