Clayton Dubilier & Rice LLC further increased its cash offer for Anixter International Inc. in a deal that pegs the latter's enterprise value at about $4.3 billion.
Under the revised offer, Clayton intends to pay $93.50 per share to Anixter shareholders. The private investment firm had offered a cash consideration of $86.00 per share and a $2.50 contingent value right.
Anixter's board concluded that Clayton's latest offer is superior to a rival bid from WESCO International Inc., its Chairman Sam Zell said. Electrical products distributor WESCO offered $90 per Anixter share or a total enterprise value of about $4 billion, including net debt.
Clayton's updated offer allows Anixter to continue deal negotiations with WESCO, as well as to respond to an unsolicited offer that could lead to a superior proposal.
The deal remains subject to approval by Anixter shareholders and customary closing conditions, as well as regulatory clearances in the European Union and Russia that are expected to be secured by February. Clayton may delay the deal's closing up to Sept. 30. Certain Anixter shareholders, including entities associated with Zell, intend to vote in favor of Clayton's offer.
Anixter is a global provider of network, security, electrical, electronic and utility power services.