Lisle-based cables and connectors company Molex is set to be acquired by the Kansas-based Koch Industries Inc. at a cost of $38.50 per share for 178.2 million shares—a sum total of about $7.2 billion.
According to Crain’s Chicago Business, Molex shares soared more than 30 percent after the deal was announced Monday. The deal (which still needs to be approved by shareholders) is the second largest in Koch’s history, falling short of the $13 billion spent to acquire Georgia Pacific Corp. in 2005, the site said.
“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,” the site quoted Molex Co-Chairman Fred Krehbiel saying in a statement.
Molex will remain in Lisle and keep its current management, the Daily Herald said, and the company will be run as a Koch subsidiary. Its largest client is Apple, which accounted for 15 percent of sales in the past fiscal year, Crains said.
The price of $38.50 per share is a 42 percent premium over where Molex had closed on Friday, at about $29.34, the Chicago Tribune said.
“Molex has become a global leader by focusing on product innovation and uvalue creation, driven by its talented leadership and employees,” the New York Times quoted Charles Koch saying in a statement. “We look forward to jointly applying the capabilities of our two companies to help take both to the next level.”
Charles and brother David are well-known nationally for their support of conservative politics.
Molex is headquartered at 2222 Wellington Ct. in Lisle.