WESCO International, Inc.
) announced its acquisition of British Columbia-based Trydor
Industries (Canada) Ltd. for an undisclosed amount. The deal is
expected to be closed in July.
Trydor Industries has year-to-date sales of approximately $35
million, with offices in Surrey, Calgary and Edmonton. The company
distributes high-voltage electrical products and services for
transmission, substation and other network needs of utilities,
independent power producers and utility contractors in Canada.
The Trydor acquisition will bolster WESCO's presence in Canada
through the expanded utility business and customer base. WESCO has
been operating in the Canadian market since 1922 with about 1,100
employees. In 2011, the company generated approximately 15% of
revenue in Canada with annual sales of $900.6 million ($682.4
million in 2010 or up 32% year over year). In October, WESCO had
acquired Brews Supply, Ltd. a distributor of industrial, utility
and commercial products with the same intention to strengthen its
industrial and utility market position in Canada.
The acquisition is also expected to be accretive to WESCO's
earnings. It will likely add 5 cents per share to the company's
profit in the first year of operation. Wesco posted earnings of
$3.96 per share in 2011.
WESCO is quite active on the M&A front. Including Trydor,
the company has made six acquisitions in the past 21 months. The
earlier five acquisitions together had annualized sales of
approximately $460 million as of their respective closing
The last acquisition was of RS Electronics in January, which
expandedWESCO's industrial OEM customer base and enhanced its
electronic-based product offerings. The company's acquisition
pipeline remains quite robust with opportunities to further expand
and strengthen its portfolio.
WESCO is one of the largest suppliers and distributors of
electrical construction products in the United States. The
company's first-quarter earnings and revenue were up a respective
39.0% and 12.0% year over year. The growth was aided by
acquisitions and an additional workday in the quarter. WESCO
Anixter International Inc.
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Currently, WESCO has a Zacks #3 Rank, implying a short-term
Strong Hold recommendation.
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