It was one of the final hurdles left to clear in the $4.5 billion megadeal.
Four days after reporting its 2020 first quarter financial results, WESCO International said Monday that on April 30 it received approval from Mexico for its merger with fellow distributor Anixter International.
Mexico approval was one of the final hurdles for the merger that is valued at $4.5 billion and will create an electrical, industrial, data, security, communications MRO and OEM products distributor with a combined revenue of about $17 billion. The deal — which followed a bidding battle between WESCO and private firm Clayton, Dubilier & Rice — remains subject to regulatory clearance from Canada. Anixter shareholders already nearly unanimously approved the deal in a vote on April 2. Approval or clearance has previously been received under the antitrust laws of the United States, Russia and Turkey.
WESCO reiterated Monday that it and Anixter expect to complete the merger in the second or third calendar quarter of 2020.
On April 30, WESCO reported 2020 Q1 sales of $1.97 billion, which were flat year-over-year, with organic sales down 1.8 percent. Total profit of $34 million was down from $42 million a year earlier. The Pittsburgh, PA-based company had 2019 total sales of $8.40 billion and profit of $222 million. During its Q1 report, WESCO detailed cost-savings actions enacted as a result of business impacts from the COVID-19 pandemic, including reducing C-Suite executive salaries by 25 percent.
Meanwhile, Glenview, IL-based Anixter reported its Q1 financials on April 28, showing total sales of $2.1 billion, down 2 percent year-over-year, while profit of $36 million was down 9 percent. The company had total 2019 sales of $8.85 billion and profit of $263 million.
Source: Industrial Distribution