Anixter International Inc., Glenview, Ill., announced that it has entered into a definitive agreement to acquire Tri-Ed, Woodbury, N.Y., an independent distributor of security and low-voltage technology products, from Audax Group for a purchase price of $420 million. “Anixter paid a nice full price for what [is] for them a very strategic acquisition,” said John E. Mack, executive vice president, co-head of Investment Banking and Head of Mergers & Acquisitions at Imperial Capital, Los Angeles, who was a co-advisor on the deal. He added that Audax is exiting on the early side for typical private equity companies.
“They owned the business for just under three years, and a typical horizon for a private equity group considering an exit is three to five years, but there is a very good market right now for the sale of businesses, and this one has done very well between its organic growth and its acquisitions,” Mack commented. The strong acquisition interest from private equity firms and a very good debt market came together to present a good deal to Audax, he added.