WESCO International, Inc. WCC shares are trading higher on Friday.
The company inked a pact to sell its Wesco Integrated Supply (WIS) business to Vallen Distribution, Inc., a portfolio company of Nautic Partners, for a purchase price of $350 million.
The sale encompasses nearly all of Wesco’s MRO integrated supply business in North America and Europe. The business that is being divested had annual net sales of approximately $784 million in 2023.
The proceeds will primarily go towards debt reduction and share repurchases. Long-term debt, net, as of Dec. 31, 2023, was $5.313 billion.
“This divestiture supports our portfolio management strategy to prioritize investments and resources in the areas of our business that offer the strongest growth and profit potential,” said John Engel, Chairman, President, and CEO of Wesco.
The sale is anticipated to close in the second quarter following customary regulatory approval.
Earlier this month the company reported fourth quarter results. Net sales were $5.5 billion for the fourth quarter of 2023 compared to $5.6 billion for the fourth quarter of 2022, a decrease of 1.5%.
Price Action: WCC shares are trading higher by 1.76% to $147.06 on the last check Friday.
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