WESCO International, Inc. (NYSE:WCC) reported that it had raised its offer to buy Anixter International from $90 to $93.50 per share in cash and stock.
The Pittsburgh-based industrial giant told investors Thursday the scale, earnings power and significant free cash flow of the combined business would accelerate growth and deliver increased shareholder value.
"This proposed transaction," read Thursday’s news release, "would bring together WESCO's and Anixter's diversified product offerings, broad customer relationships, extensive global footprint and service capabilities, and substantial intellectual and human capital to create a premier electrical and data communications distribution company."
Together, the two companies say, WESCO and Anixter would be positioned to invest in digital transformation on a faster timeframe, benefit from growth and operational synergies, and accelerate the combined company's growth and profitability.
Anixter stockholders would participate in all the value upside in the WESCO common stock.
The common stock consideration would be subject to downside protection, such that if the average market value of WESCO common stock prior to closing is between $46.23 per share and $57.79 per share, then the cash consideration paid at closing would be increased by up to $2.77 per share to ensure that the total consideration remains at $93.50 per Anixter share.
WESCO shares improved $1.10, or 1.9%, to $58.89
