Anixter International Inc., Glenview, Ill., plans to sell its Aerospace Hardware Division to entities controlled by Greenbriar Equity Group LLC. Under the terms of the agreement, Anixter will receive $155 million in cash, subject to a net working capital adjustment, and up to an additional $30 million if certain milestones are achieved.
“Despite the fact that Aerospace has historically delivered operating margins in excess of our corporate average, current high working capital requirements have impacted its return on tangible capital compared to our other businesses. Therefore, this division is no longer strategically aligned with our overall business,” said Anixter President and CEO Robert Eck. “Given Greenbriar’s significant focus in the aerospace sector, we are confident it will be a strong and supportive partner for the aerospace business and build upon its solid market position under new ownership.”