Anixter International Inc. (NYSE: AXE), Glenview, IL, distributor of communication and security products, electrical and electronic wire & cable, fasteners and other small parts, and No. 5 on MDM's list of the top 25 electrical distributors, has agreed to sell its Aerospace Hardware Division to entities controlled by Greenbriar Equity Group LLC for $155 million in cash and up to an additional $30 million if certain milestones are achieved on or before Dec. 31, 2013.
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Robert Eck, president and CEO of Anixter, said: "We believe this transaction is a positive development for all parties involved, as it captures what we view as a fair value for the Aerospace Hardware Division and enables us to focus our attention and resources on our core operations and strategic initiatives. Our performance in Aerospace Hardware has been strong since first entering the business through our 2002 Pentacon acquisition, having achieved first half 2011 revenues of approximately $94.1 million and EBITDA of $12 million.
"However, customer and supplier consolidation has resulted in a business model that is distinctly different than our overall model. Despite the fact that Aerospace has historically delivered operating margins in excess of our corporate average, current high working capital requirements have impacted its return on tangible capital compared to our other businesses; therefore this division is no longer strategically aligned with our overall business."
