Wesco expands Canadian footprint with $1.16 billion buy
(Reuters) - Electrical products distributor Wesco International Inc (WCC.N) 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)
NEW YORK - U.S. stocks fell on Thursday, with the Dow and S&P 500 dropping for a fifth straight session after a round of mixed economic data left traders guessing as to when the Federal Reserve would begin to slow its stimulus program. | Video
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.