September 10, 2013 By Anthony Capkun
September 10, 2013 – Global electronic components company Molex Inc. has entered into a definitive agreement to be acquired by Koch Industries Inc. Koch will acquire all of Molex’s outstanding shares for a total equity value of about $7.2 billion.
“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,” said Fred Krehbiel, co-chair of the Molex board.
The agreement has been approved by both the Molex and Koch boards of directors. At the close of the transaction, Molex will become a stand-alone subsidiary of Koch Industries, and will continue to be operated by the company’s current management team. Molex will retain the company name following the transaction, as well as its headquarters in Lisle, Ill.
“We are excited to work with Koch to continue our track record of growth and investment in people, innovation and technology,” said Martin Slark, Molex vice-chair and CEO.
Charles Koch, chair and CEO of Koch Industries, considers Molex “an exciting acquisition that matches up well with our culture and our core capabilities”.
“Molex has become a global leader by focusing on product innovation and value creation, driven by its talented leadership and employees,” Koch said. “We look forward to jointly applying the capabilities of our two companies to help take both to the next level.”
The transaction is not subject to a financing condition, and the parties are targeting a calendar year-end close, subject to customary closing conditions, including receipt of shareholder and regulatory approvals.
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