Why Anixter International Stock Just Popped 15.5%
Shares of Anixter International (NYSE: AXE), a provider of enterprise cabling and security, electrical and electronic wire, and utility power solutions, are up 15.5% as of 1:30 p.m. EDT today on news that the company has agreed to sell itself to private equity powerhouse Clayton, Dubilier & Rice in a deal valued at $3.8 billion, including net assumed debt.
The transaction will result in Anixter becoming a private company, and is expected to close by the end of the first quarter of 2020, management said.
Clayton, Dubilier will be paying all cash, so investors can expect to be bought out pretty cleanly in a few months, receiving cash for their shares. On the other hand, a handful of law firms have already announced shareholder derivative lawsuits in response to the merger, arguing that the buyout price -- $81 per share -- may not be fair.
Source Fool.com
