Anixter Rises After Accepting $4.3B Cash Offer From CD&R

New York private equity firm Clayton, Dubilier & Rice's winning offer is a 31% premium over Anixter's closing price on Oct. 29.
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Anixter's (AXE) - Get Report stock price advanced Thursday after the distributor of communications and security products unveiled a sweetened merger agreement valued at $4.3 billion.

Shares of Anixter rose 3.3% to $95.12 a share after the distributor, with products including electrical and electronic wire and cable, said it had agreed to a higher bid of $93.50 a share cash from Clayton, Dubilier & Rice.

The New York private equity firm upped the ante from its previous offer of $86 a share (plus an additional $2.50 a share conditioned on the company meeting certain targets).

CD&R last week had found itself outbid by Wesco (WCC) - Get Report, the Pittsburgh multinational electronics distributor and services company, which offered $93.50 a share in cash and stock.

The new offer, which Anixter accepted, is a 31% premium over the company's closing price on Oct. 29 and a 47% premium over the stock's weighted-average trading price for the three previous months, Anixter said in a statement.

Overall, Clayton, Dubilier & Rice's new offer represents an increase of $300 million, with its previous offer valued at $4 billion, Anixter said.

After comparing the two offers, Anixter's board went with CD&R's all-cash deal. Wesco's offer was a mix of cash, common stock, and a new series of preferred stock, "for which there is no established market or trading price," Anixter Chairman Sam Zell said in a statement.

"The board has unanimously concluded that CD&R's improved, all-cash proposal is superior to Wesco's offer," Zell said.