Molex (to be?) sold to Koch for 7.2 billions

[mariush]

Thought this may be interesting to some of you guys here:

http://dealbook.nytimes.com/2013/09/09/koch-industries-to-buy-molex-for-7-2-billion/?_r=0

http://www.marketwatch.com/story/koch-agrees-to-buy-molex-for-72-billion-in-cash-2013-09-09-84855235

Koch Industries Inc. has agreed to buy electronics components firm Molex Inc. (MOLX, MOLXA) for $7.2 billion in cash, a move that expands the industrial conglomerate's footprint.

Molex makes electronic, electrical and fiber optic interconnection systems and serves the mobile devices, infotech, consumer electronics and automotive markets, among others. Molex reported sales for the fiscal year ended June 30 of $3.6 billion.

Koch Industries, run by the billionaire brothers Charles and David Koch, will pay Molex's shareholders a per-share price of $38.50, representing a roughly 42% average premium to Friday's close.

Koch Chief Executive Charles Koch characterized the deal as "an exciting acquisition that matches up well with our culture and our core capabilities," while also noting it provides a significant new platform for growth.

Once the deal closes--likely by the end of the year--Molex will become a standalone unit of Koch Industries and will continue to be operated by the company's current management team.

The agreement has been approved by both the Molex and the Koch boards.

"After 75 years this was a difficult decision, but our board of directors and our family believe that this transaction, which follows a diligent and thorough review process by the board, provides outstanding benefits for all our stakeholders," Molex co-Chairman Fred Krehbiel said.

Koch Industries, a closely held industrial conglomerate with annual sales of $115 billion, earlier this year acknowledged an interest in buying newspapers. Koch Industries has also previously said it also is looking at possible investments in energy and agriculture-related businesses.

Koch Industries has tended to buy and absorb entire companies, including the paper towel, tissue and packaging giant Georgia-Pacific in 2005 and the Stainmaster carpet-fiber business in 2004. But the conglomerate has also been buying minority stakes.

Earlier this year, Koch agreed to buy $240 million of preferred stock in American Greetings Corp. (AM), which helped finance the card company's plan to go private. Late last year, Koch Industries paid $1.5 billion for a 44% stake in Guardian Industries Corp., the world's fourth-largest maker of glass. Koch also is preparing to help finance a new steel mill in Arkansas.

Shares of Molex closed Friday at $29.34 and were halted premarket. The stock has risen 7.3% in the past 12 months.

[senso]

There goes a lot of connectors to the EOL list..

[Jon Chandler]

There go a lot of connectors to a company I'd rather not do business with.

[nanofrog]

Oh hell.    Price increases are surely to follow. 

[M. András]

chinese knockoff connectors will emerge now surely

[jh15]

I was annoyed by their tapping their wallet and bullying PBS to pull the Citizen Koch documentary from existence.

Now they're into my electronics?

http://www.dailykos.com/story/2013/05/21/1210748/-Did-David-Koch-Kill-Critical-PBS-Documentary

[JoeO]

You are all free to start your own connector company to compete against Molex.

There is nothing stopping you.

[nanofrog]

There is nothing stopping you.

Where do you get the kind of startup capital to compete with a company that large?

Don't know about you, but I don't keep that kind of cash on hand.   

[JoeO]

Get funding from a rich person.  Someone like Al Gore or George Soros.
I am sure that they would love to start a company to go up against the Koch brothers.