Electrical distributor WESCO International Inc., Pittsburgh, PA, will enter a joint venture with Deutsch Engineered Connecting Devices Inc., where the Hemet, CA-based company would own 60% of WESCO’s LADD operations at a price of $75 million.
Under the agreement, Deutsch has the option to acquire the remaining 40% after Jan. 1, 2010.
LADD, a part of Carlton Bates, acquired by WESCO in September 2005, distributes specialized severe duty industrial connectors. LADD has been a master distributor of Deutsch connectors in the U.S. for more than 20 years and has annual sales of $100 million.
WESCO and Deutsch will work together to further penetrate existing customers in the specialized heavy-duty connector market, and to accelerate growth in new market segments and new products.
WESCO’s primary operating entity is WESCO Distribution, Inc. WESCO Distribution is a distributor of electrical construction products and electrical and industrial maintenance, repair and operating (MRO) supplies, and is a provider of integrated supply services. 2006 annual sales were $5.3 billion.
WESCO operates seven fully automated distribution centers and 400 full-service branches in North America and selected international markets.