Supply services company Wesco International (NYSE: WCC) said Wednesday it has agreed to buy TVC Communications, a distributor of broadband communications infrastructure products, for approximately $246.5 million, from Maryland-based private equity firm Palisades Associates.
Pennsylvania-based TVC, which had annual sales of around $300 million as of the end of October, sells its technical products to the cable, telecommunications and satellite industries. It operates from 20 locations across the world, serving markets in the US, Canada, Latin America and Europe.
Wesco said the deal would allow it to expand its data communications platform, while broadening the company's footprint geographically into previously untapped international markets.
The acquisition, which is still subject to closing conditiions, will be financed with Wesco's existing cash and credit facilities.
The company said that it expects the purchase to be immediately accretive and has estimated an improvement to its 2011 diluted earnings per share of approximately $0.30 or more.
The deal is anticipated to close prior to year-end, Wesco added.
Pennsylvania-based Wesco, whose primary operating entity is Wesco Distribution, distributes electrical construction products as well as repair and operating (MRO) supplies and general supply services.
Major markets include commercial and industrial firms, contractors, government agencies, educational institutions, telecommunications businesses and utilities.