'Transformation' Powering Anixter in 2016 - Modern Distribution Management

Log In

‘Transformation’ Powering Anixter in 2016

Acquisitions help company set course for record-breaking year.
Eric-Smith-84x84
Author
Date

Anixter International Inc. is enjoying the benefits of some recent strategic moves that helped the company post record third-quarter sales and has positioned it for further top- and bottom-line growth, according to CEO Bob Eck, who spoke at the Baird Global Industrial Conference in Chicago, IL, earlier this month.

In May 2015, Anixter sold its OEM fasteners division for $380 million in order to "exit a business that was a very inflexible operating model and our lowest return-on-capital business," Eck said.

Another strategic decision – one that placed "more focus on security" – was Anixter's $420 million purchase of Tri-Ed.

But its splashiest move came last summer when the company paid $825 million for the Power Solutions division of HD Supply. Eck called the purchase of Power Solutions a "critical acquisition for us because we had a utility business that was in decline based on too narrow of a product offering, so not enough relevance to the customer."

"By acquiring the Power Solutions business," he said, "we took what was a $200 million utility subset of our legacy wire and cable business and built it into what is effectively the largest distributor in the utility space in North America."

In the third quarter, the company had a $533.5 million favorable impact from the acquisition of Power Solutions, which has helped Anixter bolster its low-voltage, transformer and switchgear product offering to gain traction in mid-size construction projects.

This new breadth of product – part of what Eck called a "transformation" for Anixter – helped the company win a five-year, $750 million contract serving one of the largest investor of utilities in the country.

"That's a program that neither one of the two entities would have been able to win on their own but the combination of the two was what drove the win," Eck said.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.