Boosting its presence in the voice-data-video (VDV) market, WESCO International Inc. agreed to acquire Communications Supply Holdings Inc., the parent company of Communications Supply Corp. (CSC), from a private equity fund. Terms of the deal were not disclosed.
The acquisition of Communications Supply Holdings Inc. from New York-based Harvest Partners LLC is expected to close in early November, according to Pittsburgh-based WESCO.
CSC, with headquarters in Carol Stream, Ill., is a national distributor of low- voltage network infrastructure and industrial wire and cable products. CSC is listed as the 14th largest distributor on Electrical Wholesaling’s 2006 Top 200 distributors. Through its network of 32 branches, CSC distributes a range of products to support advanced connectivity for voice and data communications, access control, security surveillance and building automation.
CSC had 2005 sales of $431 million and year-to-date sales as of Aug. 31 of approximately $394 million. The company is expected to produce $600 million in sales this year. CSC’s sales force consists of more than 300 associates, and its marketing activities reflect a strong focus on the Fortune 1000 and large institutional customers in the United States.
Roy W. Haley, WESCO’s chairman and chief executive officer, said the acquisition of CSC positions WESCO as a leading provider of data communications products in North America. “Our intent is to rapidly build on this position by offering a broader array of products to WESCO’s national accounts, contractor and other end-market customers. We also believe the fragmented nature of the low-voltage and data communications supply industry will likely lead to additional acquisition opportunities.”
Steven J. Riordan, CSC’s president and chief executive officer, added, “The combination of these two leading distributors will create a dynamic enterprise. CSC has been recognized for delivering measurable value and outstanding support to its customers and suppliers. We believe our customers will gain even greater access to products and product expertise, providing them with one-stop shopping. We are looking forward to our role in providing leadership to the existing WESCO datacom business within the United States.”
Riordan will continue in his role as president of CSC while also serving as a member of WESCO’s senior leadership team.
CSC has been active on the acquisition front itself, and earlier this year purchased Liberty Wire & Cable Inc., Colorado Springs, Colo., and Calvert Wire & Cable Corp., Brook Park, Ohio.
Stephen A. Van Oss, WESCO’s senior vice president and chief financial and administrative officer, said, “We will look for ways to apply WESCO’s national distribution capabilities, strategic account relationships, and LEAN process improvement techniques to CSC’s existing business. We will also be identifying and adopting effective business practices successfully utilized by CSC. These activities should provide significant sales opportunities, and operational and administrative synergies.”
With $4.4 billion in 2005 annual sales, 6,000 employees and 370 locations, WESCO was ranked as the largest electrical distributor in the United States on Electrical Wholesaling’s most recent Top 200 listing. Combined calendar year 2006 revenues for CSC and WESCO are expected to approach $6 billion.