Molex to go private upon acquisition by Koch Industries

Electronic and optical components and interconnectivity vendor Molex Inc. (NASDAQ: MOLX, MOLXA) is set to go private. The company’s board of directors has accepted an offer of $38.50 per share in cash, for a total of approximately $7.2 billion, from privately held Koch Industries, Inc.

Sep 9th, 2013

Electronic and optical components and interconnectivity vendor Molex Inc. (NASDAQ: MOLX, MOLXA) is set to go private. The company’s board of directors has accepted an offer of $38.50 per share in cash, for a total of approximately $7.2 billion, from privately held Koch Industries, Inc.

Based on September 6, 2013 closing prices, the offer represents a 42% premium on Molex's publicly traded stock, specifically a 31% premium to the common stock and a 56% premium to the Class A common stock.

Koch Industries has a wide portfolio of companies, involved in such industries as refining, chemicals, and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control equipment and technologies; commodity trading and services; minerals; ranching; glass; and investments. Molex will become a standalone subsidiary of Koch once the transaction closes, a milestone the parties expect to achieve by year’s end. The company's current management team is expected to remain in place.

Molex was founded after Frederick August Krehbiel and his son Edwin developed a moldable thermoplastic, manufactured from limestone and industrial byproducts, that they called "Molex." Current members of the Krehbiel family and certain executive officers of Molex who together own approximately 32% of the common stock and 94% of the Class B common stock have agreed to support the deal.

"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-chairman of the Molex board. “Importantly, our shareholders will receive a significant premium and compelling value for their holdings. The transaction is expected to provide substantial opportunities for our worldwide employees, many of whom have spent much of their working lives at Molex and are responsible for the company's long term success."

Charles Koch, chairman and chief executive officer of Koch Industries, described Molex as "an exciting acquisition that matches up well with our culture and our core capabilities. It also provides a significant new platform for growth.”

For more information on fiber-optic connectors and suppliers, visit the Lightwave Buyer’s Guide.

More in Mergers & Acquisitions