Anixter International Inc. (NYSE: AXE), Glenview, IL, has agreed to acquire the Power Solutions business unit of HD Supply Holdings Inc. (NASDAQ: HDS), Atlanta, GA, for $825 million.
“Power Solutions is a compelling strategic acquisition for Anixter," said Bob Eck, president and CEO of 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."
Power Solutions distributes more than 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. The HD Supply segment has 130 branches in 30 U.S. states and four Canadian provinces, and it reported fiscal 2014 revenue of $1.9 billion.
"After a detailed evaluation, we determined that a sale of our Power Solutions business to Anixter is in the best interests of our Power Solutions associates and HD Supply shareholders," said Joe DeAngelo, HD Supply CEO. "This transformational transaction improves our ability to profitably grow in excess of end market growth estimates and will allow us to further enhance our capital structure."
