Electrical products distributor Wesco International has agreed to acquire Canadian competitor Eecol Electrical Corp. for about CDN$1.14 billion (about U.S. $1.15 billion). The deal will enable Wesco to expand its business in Canada and South America, where Eecol has strong distribution. The transaction, which requires Canadian regulatory approval, is expected to close in the fourth quarter.
Wesco expects to finance the acquisition with a new institutional term loan to be entered into on or before closing, in addition to Wescoâ€™s existing credit facilities.
The Calgary, Alberta-based Eecol operates in 57 locations across Canada, and 20 in South America including Chile, Argentina, Peru and Ecuador.