$25M Gives Anixter DDI's Assets, Leases

EDEN PRAIRIE, MN-Distribution Dynamics, a distributor of fasteners and small components to original equipment manufacturers, has agreed to sell its assets and operations to Anixter International Inc. for $25 million. The proposed sale is subject to approval by the US Bankruptcy Court for the District of Minnesota, where the company has sought protection from creditors under Chapter 11 of the federal bankruptcy laws.

Headquartered in here, DDI has 277 employees in 20 locations in the US, Canada and Mexico. In its fiscal year ended Sept. 30, 2003 DDI had sales of $76 million.

Anixter, based in Glenview, IL, plans to assume DDI’s obligations with regard to facility and operating leases. The deal excludes Distribution Dynamics operations in Portland and Medford, OR. Anixter International has 151 warehouses with more than 4.5 million sf in 180 cities in 42 countries.

“We believe the acquisition of the operations of DDI will expand our geographic coverage in the US market and make us an even more attractive supplier to multi-location OEMs who are looking to improve supply chain efficiency,” says Anixter president and chief executive officer Robert Grubbs.

The proposed sale, which is subject to higher offers and court approval, is expected to close in late June.