Koch Industries agreed to acquire Molex, a supplier of electronic components, for $38.50 per share in cash, for a total equity value of approximately $7.2 billion.
The price represents a a 42% premium to the equity value of Molex’s publicly-traded stock, specifically a 31% premium to the Common Stock and a 56% premium to the Class A Common Stock, based on the closing stock prices on September 6, 2013.
The companies said the agreement has been approved by both the Molex and the Koch Industries boards of directors, and has received support from certain members of the Krehbiel Family and certain executive officers of Molex, owning in the aggregate voting stock representing approximately 32% of the Common Stock and 94% of the Class B Common Stock.
Molex will continue as a standalone 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, Illinois.
“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. 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,” said Fred Krehbiel, co-chairman of the Molex board.
Among its many product lines, Molex is a leading supplier of advanced fiber optic components, with solutions including connectors and adapters, assemblies, backplanes, optical circuitry, termination kits and tooling.