Anixter announces closing of Tri-Ed acquisition
Anixter International Inc. has announced that it has completed the acquisition of Tri-Ed for a total purchase price of $420 million, subject to working capital, escrow and other customary adjustments.
Tri-Ed generated approximately $570 million in sales and $36 million in adjusted EBITDA over the trailing twelve months ending June 30, 2014.
The acquisition is expected to be accretive to earnings in the first full year of operation, exclusive of transaction and one-time integration expenses. Anixter funded the acquisition through a combination of a previously announced $200 million term loan and available liquidity. A more detailed discussion of the financial impact will occur on Anixter’s upcoming third quarter 2014 earnings call on Tuesday, October 28, 2014.
Bob Eck, Anixter’s President and CEO, stated, “The acquisition of Tri-Ed is a strategic opportunity for Anixter and our security business, consistent with our vision to create a full-line global security platform and to accelerate profitable revenue growth. Through expanding our offering into highly complementary product lines, our customers will benefit from a broader set of products and solutions in the areas of video, access control, fire/life safety, and intrusion detection. As well, the combination brings Anixter’s expertise in IP video surveillance to Tri-Ed’s customers. In addition, this transaction provides access to the residential construction end market at an attractive point in the recovery cycle as well as to a community of security integrators and dealers not currently serviced by Anixter.”
Bill Galvin, Anixter’s Executive Vice President – Enterprise Cabling and Security Solutions, said, “We are pleased to have Tri-Ed become part of the Anixter family, and look forward to partnering with their experienced management team on the transition. We share a similar philosophy in the way we operate our businesses, the product and service offerings we bring to market, and the importance we place on our employees, customers and suppliers.”
Pat Comunale, Tri-Ed’s President and CEO, stated, “We have great respect for Anixter and are excited about the opportunities that this combination will create for our people and our business. We look forward to building on our long-standing supplier partnerships and customer relationships to create an even stronger security business.”
Ted Dosch, Anixter’s Executive Vice President of Finance and CFO, commented, “Consistent with our stated priorities for capital allocation, the Tri-Ed acquisition accelerates the pace of growth in our security business, which is one of our strategic growth initiatives. We are focused on the successful integration of the Tri-Ed business and expect to realize the benefits of the combination immediately, as well as to create additional opportunities as we fully integrate Tri-Ed into our long term strategic platform. Finally, we expect our strong cash flow generation will enable us to return to our target debt-to-capital range within 12 months, providing us with the continued financial flexibility that is a hallmark of our financial strategy.“
Greenhill & Co. served as financial advisor and Skadden Arps served as legal counsel to Anixter on the transaction.