WESCO International, Inc.
) recently completed its acquisition of British Columbia-based
Trydor Industries Ltd. for an undisclosed amount. The deal was
announced last month.
Trydor Industries distributes high-voltage electrical products
and services for transmission, substation and other network needs
of utilities, independent power producers and utility contractors
in Canada. It has offices in Surrey, Calgary and Edmonton, with
year-to-date sales of approximately $35 million.
Wesco posted earnings of $3.96 per share in 2011. The
acquisition is expected to add 5 cents per share to WESCO's profit
in the first year of operation.
Additionally, the acquisition will widen 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.
In October 2011, WESCO had acquired Brews Supply, Ltd. a
distributor of industrial, utility and commercial products with the
same intention of strengthening its industrial and utility market
position in Canada.
WESCO is quite active on the merger and acquisition front.
Including Trydor, the company 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
expanded WESCO's industrial customer base and enhanced its
electronic-based product offerings. The company's acquisition
pipeline remains quite robust with opportunities to expand
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.
W.W. Grainger Inc.
Currently, WESCO has a Zacks #3 Rank, implying a short-term
Strong Hold recommendation.
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