Wesco International Inc (NYSE: WCC) said on Friday that it had entered into a definitive agreement to sell its Wesco Integrated Supply business to Vallen Distribution Inc for a total consideration of $350 million.
The business that is being divested generated annual net sales of nearly $784 million last year.
“This divestiture supports our portfolio management strategy to prioritize investments and resources in the areas of our business that offer the strongest growth and profit potential. Our WIS team has consistently provided exceptional value to our customers over the years. I am very proud of their accomplishments and thank them for their outstanding customer service,” John Engel, Chairman, President and Chief Executive Officer of Wesco International Inc, said in a press release.
The transaction is expected to close during the second quarter.
The proceeds from the sale are to be used to reduce debt and repurchase shares, Wesco said.
Stock Performance
The shares of WESCO International Inc (WCC) closed 0.66% ($0.96) higher at $145.48 in New York on Friday, as they extended the gain from the previous market session.
The company’s total market cap now stands at $7.413 billion.
The shares of WESCO International Inc (WCC) have retreated 16.33% so far this year, following a 38.88% gain in 2023.
Analyst stock price forecast and recommendation
According to TipRanks, at least 6 out of 7 surveyed investment analysts had rated WESCO International Inc’s stock as “Buy”, while 1 – as “Hold”. The median price target on the stock stands at $174.00, which translates into a 19.60% upside compared to the closing price on Friday.
The high point of the analyst forecast range stands at $190.00.
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