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


Changing Scene

  • Mattr Completes Acquisition of AmerCable, Establishing US Wire and Cable Manufacturing Footprint

    Mattr Completes Acquisition of AmerCable, Establishing US Wire and Cable Manufacturing Footprint

    January 10, 2025 Mattr Corp. has announced that it has closed its previously announced acquisition of AmerCable Incorporated [see press release], which now forms part of Mattr’s Connection Technologies reporting segment. Under the terms of the transaction, Mattr has acquired all of the outstanding shares of AmerCable from Nexans USA Inc. for a purchase price… Read More…

  • Ontario Launches New Energy Efficiency Programs

    Ontario Launches New Energy Efficiency Programs

    January 10, 2025 The Ontario government is launching new energy efficiency programs, including the new Home Renovation Savings Program. The programs are part of a new $10.9 billion, 12-year investment in energy efficiency. The new Home Renovation Savings Program will launch on January 28, 2025, and offer rebates of up to 30 per cent for home energy… Read More…

  • The Government of Yukon Pauses the Affordable Heat Pump Program Due to High Demand

    The Government of Yukon Pauses the Affordable Heat Pump Program Due to High Demand

    January 9, 2025 The Affordable Heat Pump Program (AHPP) is fully subscribed through 2025, with 84 households receiving heat pumps through the program since the program launched on December 19, 2024. The rapid uptake of the program exceeded expectations, demonstrating Yukoners’ interest in switching to more efficient electric heating sources that result in lower utility… Read More…

  • Jesse Spring of Primary Engineering and Construction Named EHRC 2024 Leader of the Year

    Jesse Spring of Primary Engineering and Construction Named EHRC 2024 Leader of the Year

    January 6, 2025 Electricity Human Resources Canada (EHRC) is thrilled to announce Jesse Spring, CEO of Primary Engineering and Construction, as the recipient of the 2024 Leader of the Year Award. EHRC proudly recognizes Jesse for his leadership, which is built on excellence and powering growth. Jesse’s journey with Primary began in 2008 as an… Read More…