Wesco expands Canadian footprint with $1.16 billion buy

Wed Oct 17, 2012 5:54pm EDT
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(Reuters) - Electrical products distributor Wesco International Inc (WCC.N: Quote) said it will buy rival EECOL Electric Corp for about C$1.14 billion ($1.16 billion) to expand its presence in Canada and South America.

Wesco's shares jumped 9 percent to $62.24 after the bell. They closed at $57.17 on Wednesday on the New York Stock Exchange.

The acquisition, which is expected to close in the current quarter, will add about $1.00 per share to Wesco's earnings in the first full year of operation, the company said.

The deal comes about 4 months after Wesco bought another Canadian rival Trydor Industries Ltd to grow its utility business in the country. (r.reuters.com/mun43t)

EECOL Electric, which has 57 locations across Canada, is the country's largest independent electrical equipment distributor with annual revenue of about $900 million.

Wesco, which sells wiring devices, fuses and terminals, currently gets about 15 percent of its revenue from Canada and 1 percent from Mexico.

Wesco, which has a market capitalization of about $2.5 billion, is scheduled to report third-quarter results on Thursday.

(Reporting by Sagarika Jaisinghani and Krithika Krishnamurthy in Bangalore; Editing by Roshni Menon)