WESCO acquires TVC for $246M

South Side-based distributor WESCO International Inc. is acquiring Annville-based TVC Communications LLC in a deal worth roughly $246.5 million, the company said Wednesday morning.

TVC, had annualized sales of $300 million as of Oct. 31 and employs more than 300 people in 20 locations. The company distributes broadband communications infrastructure products for the cable, telecommunications and satellite industries, according to a statement released by WESCO. TVC has customers in the U.S., Canada, Latin America and Europe.

WESCO is using existing cash and credit facilities to finance the deal, which is expected to close before the end of the year. The acquisition is expected to be immediately accretive, said President and CEO John Engel in a written statement. The company expects the deal will improve WESCO’s 2011 diluted earnings per share of roughly 30 cents or more, he added.

“Our strategy of providing industry leading supply chain solutions to our global customers is being executed as we continue to expand our business through above-market organic growth and accretive acquisitions,” Engel said. “TVC strengthens WESCO’s data communication platform by providing a more comprehensive suite of products and services to existing and new customers, while expanding our geographic footprint into previously untapped international growth markets.”

In the acquisition announcement, WESCO Senior Vice President and COO Stephen Van Oss noted that the management team from TVC would move over to WESCO and report to David Bemoras, vice president and general manager of the data and security business unit.
TVC's President and COO James Manari also noted in the statement that by combining the two companies, it “will provide a terrific value proposition to both our customers and our loyal supplier and manufacturing partners.”

In October, WESCO (NYSE: WCC) reported a 14.9 percent increase in sales to $1.3 billion for the third quarter compared with last year, but the company’s profits were flat year-over-year at $33.7 million, or 74 cents per share.Read more: WESCO acquires TVC for $246M