WESCO completes joint venture sale; IDG closes Alamo Iron Works acquisition
Two of the industry's largest players closed some big deals this week.
Pittsburgh-based electrical distributor WESCO International completed the sale of its interest in LADD Industries LLC to Deutsch Engineered Connecting Devices Inc., and MRO distributor Industrial Distribution Group finalized its purchase of San Antonio-based Alamo Iron Works.
WESCO was sole owner of LADD, which distributes electrical connectors and accessories, until the first quarter of 2008, when it entered the joint venture with Deutsch, retaining a 40% interest in the company. As part of the joint venture, Deutsch was entitled to purchase WESCO's 40% after January 1, 2010. Deutsch notified WESCO of its intent to purchase WESCO's share in April.
As part of the sales agreement, WESCO received $40 million plus repayment of a $15 million promissory note and accrued interest, the distributor said in a statement announcing the deal.
In the IDG/Alamo deal, IDG finalized its acquisition of 135-year-old Alamo Iron Works, which filed for Chapter 11 bankruptcy protection in April. Alamo is now a wholly owned subsidiary of IDG, which is owned by LKCM Capital Group in Fort Worth, Texas.