Wesco International Inc. of Pittsburgh said Friday that it has closed on its purchase of Carlton-Bates Co. of Little Rock.
Terms of the deal, which the companies announced Aug. 17, were not disclosed.
“We are very pleased to have Carlton-Bates as part of the Wesco organization. They have an excellent management team and have established an outstanding reputation for combining product sales and value-added services to industrial customers,” said Roy W. Haley, Wesco’s chairman and CEO. “We see a terrific strategic fit with opportunities to strengthen our position in multiple market segments.”
Founded in 1957, Carlton-Bates is a regional industrial distributor of electrical and electronic components. It has about 500 employees and 20,000 customers throughout the U.S. and Mexico. This year, the company ranked No. 26 on Arkansas Business’ list of largest private companies with $276.4 million in revenue.
Haley also said the company expects to see “substantial incremental earnings” after the sale in the range of 8 cents per share this year and 37 cents to 40 cents per share in 2006.
The company also said it completed this week the issuance of $150 million in senior subordinated notes and $150 million in convertible debentures. Proceeds from the offering will be used for the Carlton-Bates acquisition and other purposes, Wesco said.
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