This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Koch Industries Buys Molex for $7.2B

NEW YORK ( The Deal) -- Koch Industries said Monday, Sept. 9, it has a deal in place to acquire electronic component and wiring manufacturer Molex (MOLX) in a deal valued at $7.2 billion.

Terms of the deal call for holders of Lisle, Ill.-based Molex's shares to receive $38.50 a share, a premium of 31% to the Friday close on Molex's widely traded shares and a premium of 42% when including the company's more closely held class A shares.

As part of the deal, certain Molex executive officers and members of the Krehbiel family, a major holder, have agreed to vote shares totaling 32% of the common stock in favor of the transaction.

Molex, which was formed 75 years ago as a maker of moldable plastics, today is a major manufacturer of fiber optic cable and other transmission lines. Post-deal Molex would become a standalone subsidiary of Koch and continue to be led by current management from its existing Illinois base.

Company co-Chairman Fred Krehbiel called the deal "a difficult decision" but said that the deal is the best move for Molex.

"Our shareholders will receive a significant premium and compelling value for their holdings," Krehbiel said. "The transaction is expected to provide substantial opportunities for our worldwide employees, many of whom have spent much of their working lives at Molex and are responsible for the company's long term success."

Wichita, Kan-based Koch is a $115 billion-sales privately-held conglomerate with interests in refining, forestry, chemicals, ranching and manufacturing. This is the company's largest deal since its $21 billion purchase of Georgia-Pacific in 2006.

Company Chairman and CEO Charles Koch in a statement said that buying Molex "provides a significant new platform for growth" at Koch.

"Molex has become a global leader by focusing on product innovation and value creation, driven by its talented leadership and employees," Koch said. "We look forward to jointly applying the capabilities of our two companies to help take both to the next level."

William Blair & Co. and BDT & Co. are serving as financial advisers to Molex, with Goldman, Sachs & Co. providing a fairness opinion and other financial advice and Dentons acting as legal adviser. Koch is being advised by attorneys with Latham & Watkins LLP.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MOLX $0.00 0.00%
AAPL $118.03 -0.71%
FB $105.41 -0.31%
GOOG $748.15 -0.02%
TSLA $229.64 5.22%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs