Wesco gets financing via Barclays, plans new debt for Anixter buyout

By Marisa Wong

Los Angeles, Jan. 9 – Wesco International, Inc. said it has obtained fully committed debt financing from Barclays and intends to offer a combination of debt, equity and equity-content securities to fund its proposed acquisition of Anixter International.

Wesco said it submitted an improved proposal to Anixter’s board of directors to acquire Anixter for $100 per share in cash and stock.

The board considers Wesco’s proposal to be a “superior company proposal,” according to a Thursday press release.

Wesco is now offering Anixter stockholders a consideration per Anixter share of $70.00 cash, plus a fixed exchange ratio of 0.2397 shares of Wesco common stock, as in its previous proposal, plus $15.89 of a newly created class of Wesco perpetual preferred stock. Based on the closing price of Wesco’s common stock on Jan. 8, the total consideration represents $100.16 per share.

Anixter had received prior offers from Wesco as well as Clayton, Dubilier & Rice LLC, each of which had revised their initial offers, as previously reported.

Wesco plans to offer debt and equity securities between signing and closing of the merger.

At closing, Wesco estimates that its pro forma leverage on a net debt to EBITDA basis would be about 4.5x.

The Anixter transaction is not conditioned on financing, according to the release.

Wesco is a Pittsburgh-based provider of electrical, industrial and communications maintenance, repair and operating (MRO) and original equipment manufacturer (OEM) products, construction materials and advanced supply chain management and logistic services. Anixter is a Glenview, Ill.-based distributor of network and security, electrical and electronic and utility power products.

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