Anixter International To Buy Tri-Ed For $420 Mln - Quick Facts

(RTTNews) - Anixter International Inc. (AXE) Monday said it will acquire Tri-Ed, an independent distributor of security and low-voltage technology products from Audax Group for $420 million. The transaction which is expected to close at the end of the third quarter of 2014, will be financed through available cash and borrowings under a new term loan.

The deal is expected to add to the company's earnings in the first full year of operation, exclusive of transaction and one-time integration expenses. Commenting on the acquisition, Ted Dosch, Anixter's CFO said: "Consistent with our stated priorities for capital allocation, the Tri-Ed acquisition accelerates the pace of growth in our security business, which is one of our strategic growth initiatives." For the year ended June 30, 2014, Tri-Ed had generated about $570 million in sales and $36 million in adjusted EBITDA. Greenhill & Co. served as financial advisor, while Skadden Arps served as legal counsel to Anixter on the transaction.