WESCO Announces Sale of Legacy Canada Datacom Business to Guillevin
WESCO International, Inc. (NYSE: WCC) has successfully sold its legacy WESCO Datacom business in Canada to Guillevin International. This divestiture fulfills WESCO's obligations under a Consent Agreement with the Canadian Competition Bureau following its merger with Anixter International in June 2020. The net proceeds from the sale will be allocated to reduce WESCO's indebtedness. CEO John Engel expressed satisfaction with the completion of this transaction and emphasized the company's commitment to serving datacom customers in Canada.
- Successful divestiture of WESCO Datacom business fulfills obligation to Canadian Competition Bureau.
- Net proceeds from sale will be used to repay indebtedness, improving financial health.
- None.
WESCO International, Inc. (NYSE: WCC) today announced that it has sold its legacy WESCO Datacom business in Canada to Guillevin International, a Canadian distributor of industrial products.
The transaction fulfills WESCO’s commitment to divest its legacy Canadian Utility and Datacom businesses in connection with its Consent Agreement with the Canadian Competition Bureau related to WESCO’s merger with Anixter International, which closed on June 22, 2020. Net proceeds will be used to repay indebtedness.
John Engel, Chairman, President, and Chief Executive Officer, said, “We are pleased to complete this transaction and to satisfy the last divestiture requirement of our agreement with the Canadian Competition Bureau. This transaction is a highly successful outcome for WESCO. We will support our associates as they transition to Guillevin, and we wish them continued success. WESCO is committed to continuing to serve datacom customers in Canada, through the legacy business we acquired with Anixter.”
About WESCO
WESCO International, Inc. (NYSE: WCC), a publicly traded FORTUNE 500® company headquartered in Pittsburgh, Pennsylvania, is a leading provider of business-to-business distribution, logistics services and supply chain solutions. Pro forma 2019 annual sales were over
Forward-Looking Statements
All statements made herein that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These statements include, but are not limited to, statements regarding the process to divest the legacy WESCO Utility and Datacom businesses in Canada, the expected benefits and costs of the transaction between WESCO and Anixter International Inc., including anticipated future financial and operating results, synergies, accretion and growth rates, and the combined company's plans, objectives, expectations and intentions, statements that address the combined company's expected future business and financial performance, and other statements identified by words such as "anticipate," "plan," "believe," "estimate," "intend," "expect," "project," "will" and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of WESCO's management, as well as assumptions made by, and information currently available to, WESCO's management, current market trends and market conditions and involve risks and uncertainties, many of which are outside of WESCO's and WESCO's management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements.
Those risks, uncertainties and assumptions include the risk of any unexpected costs or expenses resulting from the transaction, the risk of any litigation or post-closing regulatory action relating to the transaction, the risk that the transaction could have an adverse effect on the ability of the combined company to retain customers and retain and hire key personnel and maintain relationships with its suppliers, customers and other business relationships and on its operating results and business generally, the risk that problems may arise in successfully integrating the businesses of the companies or that the combined company could be required to divest one or more businesses, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve synergies or other anticipated benefits of the proposed transaction or it may take longer than expected to achieve those synergies or benefits, the risk that the leverage of the company may be higher than anticipated, the impact of natural disasters, health epidemics and other outbreaks, especially the outbreak of COVID-19 since December 2019, which may have a material adverse effect on the combined company's business, results of operations and financial conditions, and other important factors that could cause actual results to differ materially from those projected. All such factors are difficult to predict and are beyond each company's control. Additional factors that could cause results to differ materially from those described above can be found in WESCO's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and WESCO's other reports filed with the U.S. Securities and Exchange Commission ("SEC").
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FAQ
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