|Anixter International Inc. Announces the Acquisitions of Sofrasar and Camille Gergen|
GLENVIEW, Ill., Aug. 27 /PRNewswire-FirstCall/ -- Anixter International Inc. (NYSE: AXE), a leading global distributor of communication products, electrical and electronic wire & cable, fasteners and other small parts today announced that it had acquired all of the outstanding shares of Sofrasar SA ("Sofrasar") and partnership interests and shares in Camille Gergen GmbH & Co, KG and Camille Gergen Verwaltungs GmbH (collectively "Gergen") from the Gergen family and management of the entities.
Sofrasar is headquartered in Sarreguemines, France and Gergen is based in Dillingen, Germany. Both companies are fastener distributors that will complement Anixter's product offering along with offering a broad array of value-added services and supply chain management programs to Original Equipment Manufacturers ("OEMs") in a number of vertical markets.
Anixter is paying approximately $40 million in cash and assuming approximately $19 million in debt for all of the outstanding shares and partnership interests of these two companies. The combined annualized sales for these businesses are expected to be in excess of $110 million in 2008.
Commenting on the acquisition, Bob Eck, President and CEO of Anixter, said, "Consistent with the strategy we have articulated, the acquisitions of Sofrasar and Gergen represent important steps in the geographic expansion of our OEM Supply business in Europe. 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."
"In addition to being immediately accretive to earnings, we anticipate that these acquisitions will add 10 to 12 cents to diluted earnings per share during our first full year of ownership," said Eck. "When combined with our existing OEM Supply businesses in Europe, we anticipate annual revenues of approximately $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."
Anixter International is a leading global distributor of communication products, electrical and electronic wire & cable, fasteners and other small parts. The company adds value to the distribution process by providing its customers access to 1) innovative inventory management programs, 2) more than 400,000 products and over $1 billion in inventory, 3) 214 warehouses with more than 6 million square feet of space, and 4) locations in 248 cities in 50 countries. Founded in 1957 and headquartered near Chicago, Anixter trades on The New York Stock Exchange under the symbol AXE.
Safe Harbor Statement
The statements in this news release that use such words as "believe," "expect," "intend," "anticipate," "contemplate," "estimate," "plan," "project," "should," "may," or similar expressions are forwardlooking statements. They are subject to a number of factors that could cause the company's actual results to differ materially from what is indicated here. These factors include general economic conditions, technology changes, changes in supplier or customer relationships, commodity price fluctuations, exchange rate fluctuations, new or changed competitors and risks associated with integration of recently acquired companies. Please see the company's Securities and Exchange Commission filings for more information.
Additional information about Anixter is available on the Internet at http://www.anixter.com.
SOURCE Anixter International Inc. -0- 08/27/2008 /CONTACT: Dennis Letham, Chief Financial Officer of Anixter International Inc., +1-224-521-8601; or media and investor inquiries, Chris Kettmann of Ashton Partners, +1-312-553-6716, for Anixter International Inc./ /Web site: http://www.anixter.com / (AXE) CO: Anixter International Inc.; Sofrasar SA; Camille Gergen GmbH & Co, KG; Camille Gergen Verwaltungs GmbH ST: Illinois, France, Germany IN: CPR ECP SU: TNM EB-CD -- AQW529 -- 9630 08/27/2008 10:23 EDT http://www.prnewswire.com