WESCO Distribution postponed its initial public offering in order to complete a $1.1-billion buyout of the company by WESCO senior management, backed by a New York investor group. According to Roy Haley, president, chief executive officer and now also chairman of WESCO, the buyout doesn't change WESCO's plans to go public in the near future.
The buyout enabled 140 executives and key WESCO employees to double their combined stake in the company to 30% by investing between $100 million and $115 million in WESCO. The Cypress Group, a New York investment company, and other institutional investors will invest an additional $310 million. The new owners also will refinance existing debt and add some new debt when the transaction closes, bringing the total value of the transaction to approximately $1.1 billion.
The Cypress Group said a new IPO could take place around a year from now. (See related story, page 26.)