WESCO International, Inc. Announces the Acquisition of Canadian-headquartered EECOL Electric Corporation
WESCO International (NYSE: WCC), a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, and advanced supply chain management and logistics services, announced today that, through a wholly owned subsidiary, it has entered into a definitive agreement to acquire EECOL Electric Corporation, headquartered in Calgary, Alberta, Canada, and various affiliated companies for a purchase price of approximately CAD $1.14 billion.
Consummation of the transaction is subject to certain conditions, including approval under the Canadian Competition Act. The acquisition is expected to be financed utilizing a new institutional term loan to be entered into on or before closing, as well as WESCO's existing credit facilities. Closing is expected to occur in the fourth quarter 2012.
Founded in 1919, EECOL Electric is one of Canada's premier full-line distributors of electrical equipment, products, and services with approximately $0.9 billion in annual sales, 57 locations across Canada and 20 in South America, and more than 20,000 customers. EECOL has a strong warehouse-based business focused on serving industrial, oil, gas, mining, utility, and commercial and residential construction customers.
Mr. John J. Engel, WESCO's Chairman, President and Chief Executive Officer, stated, "EECOL is a strong company with a long and successful track record of delivering above-market sales growth and profitability. We have a high regard for EECOL's sales culture and excellent customer service capabilities, as well as their supplier partnerships, which complement WESCO very well. The addition of EECOL expands WESCO's presence in Canada and broadens our international footprint, specifically our capabilities in South America. This acquisition is expected to be accretive to earnings by approximately $1.00 per diluted share in the first full-year of operation."
Mr. Tom Crist, EECOL Electric's President and Chief Executive Officer, commented, "We are very pleased to have reached this agreement with WESCO. We have known the WESCO management team and organization for years and are confident it will be a great home for our business and our team. Through this acquisition, we can leverage our strong supplier partnerships, customer relationships, and brand equity and are looking forward to teaming with our new colleagues. EECOL has a rich heritage dating back to 1919, and as we look to the future opportunities as part of WESCO, we have never been better positioned for growth."
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