2015 FIN – Anixter Selling Fasteners Division

May 06

20:13 2016

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February 17, 2015 FIN – Anixter International has put its fasteners division up for sale, according to the Financial Times of London. The move comes a year after Anixter failed to find a buyer for the whole company.

“The sale of the fasteners division, which produces nuts, bolts and adhesives, is likely to fetch more than $500m, with final bids due later this month,” the Times reports.

The auction, which is being managed by Goldman Sachs, is reportedly attracting interest from the private equity sector rather than “strategic bidders.”

During the first nine months of 2014 Anixter OEM Supply – Fasteners sales increased 3.2% to $721.2 million, with North American sales gaining 2.9% to $304 million, sales in Europe dipping 1.3% to $340.2 million and Emerging Market sales growing 34.7% to $70.4 million, according to the FIN Stock Review. The company is expected to release its full-year results in the coming weeks.

“The sale of the fasteners business comes at a time of feverish activity in global mergers and acquisitions, with the combination of cheap debt and rising corporate confidence driving levels of dealmaking not seen since the start of the financial crisis,” according to the Times.

Anixter tried to sell itself in early 2014, but the process stalled after buyers failed to agree on a price for the company. Anixter was seeking offers of more than $115 per share for a market value of $3.3 billion, according to Bloomberg. European electrical-equipment distributors Rexel SA (RXL) and Sonepar and U.S.-based Grainger were all seen as potential buyers.

In the months that followed, Anixter leadership – most notably outspoken billionaire Sam Zell – unloaded millions of Anixter shares, capitalizing on investor speculation that had helped to drive up the stock value by as much as 70%.

Anixter began building its fastener business in 2002 by acquiring Pentacon for $111.4 million. After Pentacon, AFS bought Walters Hexagon in 2003, DDI in 2004, Infast in 2005 and MFU in 2006.

In 2007 Anixter bought UK-based aerospace fastener distributor Eurofast SAS for $27 million and fastener distributor Total Supply Solutions Ltd. for $8 million.

The company’s largest shareholder is Chai Trust Co., a division of Zell’s Equity Group Investments. Sam Zell is chairman and his son is a director.

View the last seven years of Anixter Fastener segment performance by clicking on the FIN Stock Review.

2014 – Fasteners segment sales rose 1.7% to $228.6 million in the third quarter.
2013 – “For the fifth consecutive quarter we achieved significant performance improvements in our Fasteners segment, reflecting increases in our customers’ production levels coupled with the results of actions we took to reposition the business for profitable growth,” said CEO Bob Eck.
2012 – Anixter International reported OEM Supply sales, including results from Anixter Fasteners, declined 12% to $228 million, “caused by a year-over-year decline in heavy truck production levels in North America and continuing weaker manufacturing production levels in Europe.”
2011 – Anixter sold its Aerospace Hardware Division — primarily threaded fasteners — for $185 million.
2010 – Anixter International reported OEM Supply sales, including Anixter Fasteners, grew 21% in the first quarter of 2011.
2009 – Anixter Pentacon and Anixter Eurofast were combined into Anixter Aerospace Hardware. The Chatsworth, CA-based division has facilities in Texas, Canada, the UK and France.
2008 – Anixter paid a combined $78.8 million to acquire two fastener operations: Wood Dale, IL-based QSN Industries Inc. and sister company, Quality Screw de Mexico SA and $20.7 million for Sofrasar SA of France and $19.4 million for Germany-based Camille Gergen
2007 – Anixter bought UK-based aerospace fastener distributor Eurofast SAS for $27 million and fastener distributor Total Supply Solutions Ltd. for $8 million.

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