Anixter International Acquires the Power Solutions Segment of HD Supply

Anixter

 

Anixter International Inc. has announced that it has entered into a definitive agreement to acquire the Power Solutions segment of HD Supply for $825 million, subject to customary post-closing working capital and other adjustments. The acquisition, which is the largest in Anixter’s history, is expected to be accretive to earnings in the first full year of operation, exclusive of transaction, one-time integration expenses and incremental amortization of intangible assets. The acquisition is expected to result in future tax benefits from acquired U.S. intangible assets with a net present value estimated to be approximately $70 million.

“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 and results in a portfolio that is well-positioned for substantial and sustainable long term growth”

Headquartered in Atlanta, Power Solutions distributes over 200,000 utility, electrical and industrial MRO products to approximately 13,000 customers including investor-owned utilities, public power utilities, electrical contractors and industrial businesses. Operating from a broad geographic footprint of approximately 130 branches in 30 U.S. states and 4 Canadian provinces, Power Solutions reported fiscal 2014 revenue of $1.9 billion and adjusted EBITDA of $79 million.

“Power Solutions is a compelling strategic acquisition for Anixter. Consistent with our message that we are sharpening our focus, this transaction will significantly enhance our competitive position in the electrical wire and cable business and further strengthen 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 the talented Power Solutions team joining the Anixter family when the transaction closes. Together, we will offer broader solutions to our respective customers and substantial long-term growth and value creation for all Anixter stakeholders.”

John Tisera, President of Power Solutions, stated, “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. 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.”

 

Related Articles


Latest Articles

  • Investment in Single-Family Homes Continues to Rise for April

    Investment in Single-Family Homes Continues to Rise for April

    June 14, 2024 Month over month, investment in building construction increased 4.5% to $20.4 billion in March. The residential sector was up 5.4% to $14.3 billion, while investment in the non-residential sector increased 2.3% to $6.1 billion. On a constant dollar basis (2017=100), investment in building construction increased 4.1% to $12.5 billion in March. Investment in single-family homes continues to rise Investment in… Read More…

  • Record High Levels in British Columbia’s Multi-Unit Residential Construction Intentions for April

    Record High Levels in British Columbia’s Multi-Unit Residential Construction Intentions for April

    June 14, 2024 Month over month, the total value of building permits in Canada significantly increased 20.5% to $12.8 billion in April. Construction intentions in the residential sector increased 21.0% to $8.0 billion and the non-residential sector rose 19.6% to $4.8 billion, with growth observed in all components. British Columbia posted a record high monthly total value of building permits ($3.1 billion),… Read More…

  • ECAO’s Ontario’s Energy Future Sector Analysis Report

    ECAO’s Ontario’s Energy Future Sector Analysis Report

    June 14, 2024 Driven by economy-wide decarbonization efforts in response to the global climate crisis, Ontario’s electricity sector is rapidly evolving to enable the shift from fossil-based energy sources to clean energy sources. At the same time, with electrification of industry, transportation and more, it is abundantly clear that the demand for electricity supply is… Read More…

  • Planned Shift from Gas to Electric Heat Required to Avoid High Costs and Emissions: Report

    Planned Shift from Gas to Electric Heat Required to Avoid High Costs and Emissions: Report

    June 14, 2024 New research published today by the Canadian Climate Institute finds that a system-wide shift from gas to electric heat is the lowest-cost path through the clean energy transition. The report, Heat Exchange: How today’s policy choices will drive or delay Canada’s transition to clean, reliable heat, concludes that provincial government action will be  necessary to protect reliability and… Read More…


Changing Scene

  • ECAO Recognizes its 2024 R. Hugh Carroll Safety champions

    ECAO Recognizes its 2024 R. Hugh Carroll Safety champions

    June 17, 2024 The Electrical Contractors Association of Ontario’s R. Hugh Carroll Safety Awards demonstrate the ECAO’s commitment “to promoting and fostering a positive, safety-first culture amongst its membership, and the electrical industry”. This year’s honorees were recognized during the association’s 2024 annual general meeting at the Woodbine Trackside Clubhouse. “Every year it gets harder to pick… Read More…

  • Danielle Mayer – 2024 ECAM Award Recipient

    Danielle Mayer – 2024 ECAM Award Recipient

    June 14, 2024 Danielle Mayer’s journey to receiving the 2024 ECAM Award is one of dedication and determination. Danielle’s interest in the electrical trade sparked when she realized its potential as a hands-on career path, prompted by the suggestion from her friends that they needed an electrician among them. Beginning her exploration of the electrical… Read More…

  • CAF-FCA Unveils Trades Talent – An Innovative Speaker Connection Service at 2024 National Apprenticeship Conference

    CAF-FCA Unveils Trades Talent – An Innovative Speaker Connection Service at 2024 National Apprenticeship Conference

    June 14, 2024 The 2024 National Apprenticeship Conference saw an exciting announcement from the Canadian Apprenticeship Forum (CAF-FCA) with the launch of Trades Talent, an innovative online service designed to connect event planners with expert speakers in the skilled trades sector. This ground-breaking platform promises to be a game-changer for those seeking knowledgeable and engaging… Read More…

  • Atkore Announces Environmental Product Declarations for Steel and PVC Conduit Products

    Atkore Announces Environmental Product Declarations for Steel and PVC Conduit Products

    Atkore Inc. announced it has published Environmental Product Declarations (EPDs) for its Galvanized Steel, Stainless Steel, and PVC Conduit & Fittings portfolios. Verified by an independent third party, each EPD contains a product’s life cycle assessment that measures its environmental impact, such as greenhouse gas emissions, energy use, water consumption, waste generation, and other factors…. Read More…