Koch snags electronics connector maker Molex in $7.2B acquisition

By Frank Esposito
Senior Staff Reporter

Published: September 13, 2013 6:45 pm ET
Updated: September 15, 2013 4:24 pm ET

Related to this story

Topics Mergers & Acquisitions Electrical/electronics Electronics Injection Molding
Companies & Associations

Industrial conglomerate Koch Industries Inc. has acquired Molex Inc. — a major producer of plastic components for the electronics market — in a deal valued at around $7.2 billion.

The $38.50-per-share deal represented an overall premium of 42 percent on public Molex stock as of Sept. 6, officials with both companies said in a Sept. 9 news release. The stock was trading at $38.50 early Sept. 13.

The deal is being supported by the boards of both companies, as well as members of the Krehbiel family, which founded Molex in 1938 and controls almost one-third of the firm's common stock.

"After 75 years, this was a difficult decision," Molex board co-Chairman Fred Krehbiel said in the release. "But our board of directors and our family believe that this transaction … provides outstanding benefits for all our stakeholders."

Koch Chairman and CEO Charles Koch added in the release that Molex is "an exciting acquisition that matches up well with our culture and core capacities."

Lisle, Ill.-based Molex posted sales of just over $3.6 billion in its fiscal 2013, which ended June 30. That total was up almost 4 percent vs. the year before. The company's fiscal 2013 profit of just under $244 million was down almost 14 percent in the same comparison.

Molex operates 41 manufacturing sites and employs more than 35,000 worldwide. More than 70 percent of the firm's sales are generated from products sold outside of the U.S.

The company's per-share stock price began 2013 around $27.50 and was under $30 when the deal with Koch was announced.

Products made by Molex include connectors, sockets and cable assemblies, many of which are plastic-based. The firm was launched when Frederick August Krehbiel and his son Edwin developed a durable, moldable thermoplastic from limestone and industrial by-products. They dubbed the material Molex and used it to make items such as flowerpots and toys before the firm ventured into electronics in the 1940s.

Today, Molex uses plastic resin as a primary raw material and operates state-of-the-art injection molding equipment, according to company documents. The firm's proprietary plated plastic technology provides shielding in applications such as mobile-phone antennas.

Wichita, Kan.-based Koch is one of the largest private companies in the U.S., with annual sales of about $115 billion. In plastics, Koch owns Invista, a Wichita-based firm that ranks as one of the world's largest makers of nylon resin and fibers. Koch's other investments include refining, chemicals and ranching.


Comments

Koch snags electronics connector maker Molex in $7.2B acquisition

By Frank Esposito
Senior Staff Reporter

Published: September 13, 2013 6:45 pm ET
Updated: September 15, 2013 4:24 pm ET

Post Your Comments


Back to story


More stories

Image

Arsenal Capital selling Royal Adhesives and Sealants

April 27, 2015 4:10 pm ET

Private equity firm Arsenal Capital Partners has sold off a plastics-related business for the second time in six months.    More

Image

Eriks NV buys two US polymer companies

April 24, 2015 10:38 am ET

Dutch company Eriks NV is expanding its reach in the North American plastics sector with two acquisitions: Dallas-based Seals and Packings Inc. and...    More

Image

Danish packaging firm Faerch buys UK's Anson as part of growth strategy

April 24, 2015 9:37 am ET

Denmark-based packaging company Faerch Plast A/S has acquired Ely, United Kingdom-based Anson Packaging Ltd., a move the company says “should...    More

Image

Reifenhäuser acquires German spinneret company Enka Tecnica

April 17, 2015 9:31 am ET

Germany-based Reifenhäuser GmbH & Co. KG, a major manufacturer of extrusion equipment, has announced that it is acquiring Enka Tecnica GmbH, a German ...    More

Image

Spain's Grupo Antolin to buy Magna's interiors business

April 16, 2015 12:33 pm ET

Spain's Grupo Antolin has reached an agreement to purchase Canadian auto supply giant Magna International Inc.'s interiors unit in a deal valued at ab...    More

Market Reports

North American Thermoformed Packaging Market Outlook & Review 2015

Our annual report provides a thorough review and analysis of economic and political conditions, emerging market trends, packaging design advances, materials pricing and sustainable packaging issues impacting supply and demand in the TP segment. Our analysts identify key drivers of growth and opportunities for processors to remain competitive in the years ahead through innovation, production efficiencies and more.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events