Anixter to sell Fasteners to AIP for $380 m

US wire and cable distributor, Anixter International has entered into a definitive agreement to sell its OEM Supply - Fasteners segment to private equity firm, American Industrial Partners (AIP) for $380 million in cash.

The transaction, which was approved by Anixter's Board of Directors, is expected to close during Q2 2015, subject to customary closing conditions and regulatory approval.

Fasteners is a leading global distributor and manufacturer of highly-engineered fasteners for customers in the heavy truck, power train, luxury automotive, agriculture, construction, recreational vehicles and other vertical industries. Fasteners serves customers in 15 countries, and the average relationship among its 10 largest customers exceeds 17 years, said Anixter. The business reported 2014 revenues of $938.5 million and operating profit of $39.1 million.

The transaction will sharpen Anixter's focus on its core businesses, which consist of the Enterprise Cabling & Security Solutions (ECS) and Electrical and Electronic Wire & Cable (W&C) segments. It will also give Anixter the financial flexibility to grow both business segments through organic investments and acquisitions additional operational expertise and financial resources to drive continued growth in its industry, said Bob Eck, President and Chief Executive Officer of Anixter.

"I am confident that we have found the right partner in AIP, who brings deep operating and industry expertise as well as additional financial resources, which will enhance our ability to meet the needs of our customers and capitalize on global growth opportunities," said Ian Clarke, executive VP - Fasteners at Anixter.

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 CEO 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.

Goldman, Sachs & Co. served as financial advisor and Sidley Austin LLP served as legal counsel to Anixter. Baker Botts LLP served as legal counsel to AIP.

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