U.S.-based WESCO International (WCC, Financial) gained more than 20%, after bidding to acquire rival wholesale distributor Anixter. While there is no guarantee that WESCO will prevail over other bidders, the deal looks promising. Anixter could be a complementary acquisition for WESCO, with opportunity for geographic and customer base expansion. However, the bidding war has caused Anixter’s share price to become a bit elevated considering the debt that WESCO would need to absorb.
From Bernard Horn (Trades, Portfolio)'s Polaris Global Value Fund fourth-quarter 2019 shareholder letter.
