Behind the Deal: Anixter & HD Supply

Modern Distribution Management Article by Eric Smith

Anixter International Inc. recently announced it would acquire HD Supply’s Power Solutions division, one of its core lines of business. This article looks at how the $825 million deal benefits both companies.

The roots of Anixter International Inc.’s ac­quisition of the Power Solutions division of HD Supply Holdings Inc. for $825 million trace back to strategic planning meetings the Glenview, IL, company held over the past few years. During those meetings, Anixter’s management team identified a pair of gaps in the company’s electrical business and brought those findings to the board, according to President and CEO Bob Eck.

First, the company lacked breadth in its electrical and electronic wire & cable business. As a specialty distributor in that product line, Eck says, Anixter had been “really good at identifying specifications for products that support a specific re­quirement a customer has and providing supply chain services around that,” but Anixter hadn’t been able to gain traction in a significant part of the market – mid-size construction projects.