The 2020 Mid-Year Economic Update_long

Anixter to Acquire Power Solutions Segment of HD Supply

$825 million purchase helps Anixter expand electrical wire and cable business.

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."

About the Author
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.

By subscribing, you are agreeing to MDM’s Privacy Policy.

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

0

articles left

This is your last free article

Subscribe to MDM Premium today and 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.