Anixter announced on August 11 that it has entered into an agreement to acquire Tri-Ed, an independent distributor of security and low-voltage technology products. Anixter will acquire Tri-Ed from Audax Group for a price of $420 million, according to a release from Anixter. “The acquisition is expected to be accretive to earnings in the first full year of operation, exclusive of transaction and one-time integration expenses,” the release said.
Tri-Ed is headquartered in Woodbury, NY and, Anixter says, “serves four major segments of the security business including video, access control, intrusion detection and fire/life safety,” Anixter’s release further stated, “and provides approximately 110,000 products to over 20,000 active dealer and integrator customers. The company employs over 600 people across 63 locations in the U.S. and Canada. The company’s multi-channel distribution strategy integrates branches, technical sales and an e-commerce platform. Tri-Ed generated approximately $570 million in sales and $36 million in adjusted EBITDA over the trailing twelve months ended June 30, 2014.”
Anixter’s president and chief executive officer, Bob Eck, stated, “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 … 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. As well, the combination brings Anixter’s expertise in IP video surveillance to Tri-Ed’s customers. In addition, this transaction provides access to the residential construction end market at an attractive point in the recovery cycle, as well as to a community of security integrators and dealers not currently serviced by Anixter.”
Anixter said it expects the transaction to close near the end of 2014’s third quarter.