facebook
twitter
rss
account
search
search
 

Koch to buy Molex for $7.2 billion

Sept. 9, 2013 at 2:45 PM   |   Comments

WICHITA, Kan., Sept. 9 (UPI) -- Koch Industries has agreed to buy Molex, an electronics component firm based in Illinois, for $7.2 billion, the firms said Monday.

The purchase price, $38.50 per share, is a 31 percent premium over Friday's closing price, The New York Times reported.

After Georgia-Pacific, a $21 billion deal, Molex is the largest takeover by privately-owned Koch Industries, the Times said.

Molex's leadership team, including the Krehbiel family that founded the company -- together representing 32 percent of the company's common stock and 94 percent of its class B stock -- has agreed to vote for the proposed deal, the Times 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," Fred Krehbiel, Molex's chairman, said in a statement.

Molex, based in Lisle, Ill., has about 36,000 employees. After the closing, it will be run as an independent subsidiary of Koch Industries.

The Koch brothers who control the company are known for their contributions to conservative political groups.

Topics: Ed Koch
© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russian bank boss feeling sanctions pain Russian bank boss feeling sanctions pain
2
Navy's Triton surveillance drone flies cross-country Navy's Triton surveillance drone flies cross-country
3
Ukraine's State Guard Service receives armored personnel carriers Ukraine's State Guard Service receives armored personnel carriers
4
Army deploying JLENS radar system to help protect Washington, D.C. Army deploying JLENS radar system to help protect Washington, D.C.
5
New GenDyn mission computers for Navy F/A-18s New GenDyn mission computers for Navy F/A-18s
Trending News
Video
x
Feedback