Anixter International has entered into an agreement to acquire Tri-Ed, a distributor of security and low-voltage technology products and a portfolio company of Audax Group, for a purchase price of $420 million. Tri-Ed generated approximately $570 million in sales and $36 million in adjusted EBITDA over the trailing twelve months ending June 30, 2014.
Tri-Ed, acquired by Audax in April 2012, is a distributor of low-voltage electronic security products including video, intrusion, access/fire, and other ancillary products. The company distributes approximately 110,000 products to over 20,000 active dealer and integrator customers. Tri-Ed was founded in 1982 and employs over 600 people across 63 locations in the US and Canada and is headquartered on Long Island in Woodbury, NY (www.tri-ed.com).
The Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. Audax has over $6 billion in assets under management in its private equity, mezzanine, and senior debt businesses. The firm was founded in 1999 and has offices in Boston and New York (www.audaxgroup.com).
Anixter International (NYSE: AXE) is a distributor of communication products, electrical and electronic wire and cable, OEM fasteners and other small parts. The company was founded in 1957 and is headquartered in the Chicago suburb of Glenview, IL (www.anixter.com).
“The acquisition of Tri-Ed is a strategic opportunity for Anixter and our security business, consistent with our vision to create a leading global security platform and to accelerate profitable revenue growth. Through expanding our offering into highly complementary product lines, our customers will benefit from a broader set of products and solutions in the areas of video, access control, fire/life safety, and intrusion detection,” said Bob Eck, Anixter’s President and CEO.
The transaction is expected to close near the end of the third quarter of 2014 and will be financed by Anixter using available cash and borrowings under a new term loan that is expected to be entered into prior to closing.
Greenhill & Co. served as financial advisor, Skadden Arps served as legal counsel, and KPMG served as accounting advisor to Anixter on the transaction.
2014 PEPD • Private Equity’s Leading News Magazine • 8-12-14