Anixter to sell fasteners business
Anixter International Inc. announced plans to sell its fasteners distribution segment to American Industrial Partners for $380 million.
The transaction is expected to close during the second quarter of 2015.
The segment is a global distributor and manufacturer of highly-engineered fasteners for customers in the heavy truck, power train, luxury automotive, agriculture, construction, recreational vehicles and other verticals. Fasteners serves customers in 15 countries, and the average relationship among its 10 largest customers exceeds 17 years. The business reported 2014 revenues of $938.5 million and operating profit of $39.1 million.
“This transaction follows significant progress by the Fasteners team in delivering improved operating performance and benefits to all stakeholders,” said Bob Eck, president and chief executive officer of Anixter. “Following the transaction, Anixter will have a sharper strategic focus on our core Enterprise Cabling & Security Solutions (ECS) and Electrical and Electronic Wire & Cable (W&C) segments and additional financial flexibility to build on these strong global platforms through organic investments, as well as strategic acquisitions, allowing us to continue to deliver long-term value to shareholders. For Fasteners, this transaction will provide access to additional operational expertise and financial resources to drive continued growth in its industry.”
“We have great respect for Fasteners, which is widely recognized as a leading global OEM supplier,” said Eric Baroyan, Partner at AIP. “With deep, long-standing customer relationships, strong management, a highly customized product portfolio and significant global growth opportunities, Fasteners is well-positioned to accelerate its business performance. We are fully supportive of their strategic plan, and look forward to collaborating with their talented team to build long-term value for customers, suppliers and employees.”
The Fasteners business includes 73 distribution centers, 12 quality labs and more than 1,900 employees worldwide. Upon closing, Fasteners will continue to be led by its current management team, with Ian Clarke assuming the role of president and chief executive officer of the new company. The company’s headquarters will remain in Glenview, Illinois, and the name of the new company will be announced upon closing.
AIP has also offered to acquire the portion of the Fasteners business in France that has historically supported Fasteners’ global business.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
