Pittsburgh-based WESCO International, Inc., a leading provider of business-to-business distribution, logistics services and supply chain solutions based in Pittsburgh, announced Tuesday the completion of its merger with Anixter International Inc.
“Today marks a significant milestone for WESCO and Anixter. In combining two industry leaders with successful track records, we are creating the premier electrical, communications and utility distribution and supply chain solutions company in the world,” WESCO Chairman, President and CEO John Engel said. “WESCO’s capabilities in industrial, construction, and utility matched with Anixter’s expertise in communications, security, and wire and cable create an industry-leading line-up for our customers.”
According to a statement released by WESCO, the merger enhances the scale of both companies’ abilities and provides a platform for growth in attractive international markets. The combined company generated pro forma 2019 revenue of more than $17 billion. Through its increased scale, the joint company will be able to broaden and diversify its product and services portfolio. It will also provide immediate earnings accretion and significant free cash flow generation.
WESCO expects to realize annualized run-rate cost synergies of more than $200 million by the end of its third year through efficiencies in corporate and regional overhead, optimization of the branch and distribution center network, and productivity in field operations and the supply chain.
“As we bring together our complementary products, services, and technologies, there are significant cross-selling opportunities that enable us to offer more solutions, to more customers, in more locations around the world,” Engel said. “This is a growth play which will capitalize on the accelerating secular trends of electrification, increased bandwidth demand driven by higher voice, data, video and mobile usage, and the combination and digitization of our B2B value chain.”