October 17, 2012 / 9:43 PM / in 6 years

UPDATE 1-Wesco expands Canadian footprint with $1.16 bln buy

* Deal to add $1 to EPS in first full year of operation

* Wesco shares up 8 percent aftermarket

Oct 17 (Reuters) - Electrical products distributor Wesco International Inc 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. ()

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.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below