Anixter Acquires Two Fastener Distributors

Anixter International Inc., a leading global distributor of communication products, electrical and electronic wire & cable, fasteners and other small parts today announced that it had acquired the assets and operations of QSN Industries, Inc. ("QSN") and all of the outstanding shares of Quality Screw de Mexico SA ("QSM").

 

QSN, based near Chicago, Illinois, is a distributor and manufacturer of fasteners for the OEM marketplace. QSN operates 13 facilities in Alabama, Arizona, Georgia, Illinois, Michigan, Ohio, South Carolina, Tennessee and Texas. Its sole manufacturing facility is located in Wood Dale, Illinois.

 

Headquartered in Aguascalientes, Mexico, QSM is a distributor of fasteners with a total of five operational sites in Mexico. The QSN and QSM operations will complement Anixter's product offering with a broad array of value-added services and supply chain management programs to Original Equipment Manufacturers ("OEMs") in a number of vertical markets.

 

As a part of this transaction, Anixter will pay approximately $80 million in cash and assume trade liabilities, for all of the assets and operations of the two companies. Combined annualized sales for these businesses are expected to be over $100 million in 2008.

 

Commenting on the acquisition, Bob Eck, President and CEO of Anixter, said, "We are pleased to have acquired the QSN and QSM operations as well as the excellent team that has successfully led these businesses. These acquisitions leverage our existing infrastructure and bring an important new critical mass to our North American OEM Supply business by adding locations in Mexico as well as manufacturing capacity. The manufacturing capabilities acquired with the QSN operations will provide Anixter with enhanced flexibility to meet supply chain commitments where quick turnaround times are important to rapidly changing customer requirements. This strong and robust operational model will better position us to drive future organic growth."

 

"We anticipate that this acquisition will be immediately accretive to earnings and add 7 to 9 cents to diluted earnings per share during our first full year of ownership," said Eck. "When combined with our existing business in North America, we anticipate annual OEM Supply revenues of over $600 million in this region over the next year."