Anixter Continues Fastener Acquisitions with 2 EU Distributors
Anixter Continues Fastener Acquisitions with 2 EU Distributors
Jason Sandefur
Anixter International Inc. will pay about $40 million in cash plus $19 million in debt to acquire two European fastener distributors.
Anixter acquired all of the outstanding shares of Sofrasar SA of Sarreguemines, France; and partnership interests and shares in Camille Gergen, based in Dillingen, Germany. Combined annual sales for the businesses are estimated at $110 million.
The acquisitions represent important steps in the expansion of Anixter’s OEM Supply business in Europe, according to CEO Bob Eck. “Through the addition of numerous important customers, primarily in France and Germany, we have added another key building block that will drive future organic growth in this important global end market,” Eck stated.
When combined with Anixter’s existing OEM Supply businesses in Europe, annual revenues are anticipated to reach $800 million in this market over the next year.
“The addition of these businesses will significantly enhance our OEM Supply business in Europe and add considerable depth to our footprint in the area as we will now be serving customers in 11 countries throughout the continent,” commented Eck.
The move comes weeks after Anixter paid $80 million for two North American fastener operations: Wood Dale, IL-based QSN Industries Inc. and its sister company, Quality Screw de Mexico SA. Combined annualized sales for these businesses are expected to exceed $100 million in 2008.
Anixter said integrating those operations would boost annual sales at its OEM Supply division, which includes Anixter Fasteners and Anixter Pentacon, above $600 million in North America.
During the second quarter of 2008, Anixter reported sales, including fasteners, climbed 7% to $1.62 billion. Operating income grew 5% $121.8 million, while net income gained 4% to $66.9 million.
Anixter distributes fasteners, communication products, electrical and electronic wire & cable through 214 warehouses and operations in 248 cities around the world. Web: anixter.com �2008 FastenerNews.com
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