In another example of a U.S.-based electrical company sharpening its global focus, Anixter International Inc., Glenview, Ill., acquired all the outstanding shares of Jorvex, SA, a distributor of wire and cable products to commercial, industrial and government entities throughout Peru. The company has distribution centers in Lima, Arequipa and Chiclayo, Peru, and has sold wire and cable, PVC and HDPE pipe, conveyor belts, along with various technical support services, for more than 40 years. Annual sales for Jorvex were approximately $115 million for 2011.
Anixter is no stranger to the Latin American market, and according to company information has had a presence in the region for 20 years. It currently operates in 12 Latin American countries — Argentina, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Jamaica, Mexico, Panama, Peru, Puerto Rico and Venezuela. Before the Jorvex acquisition, Anixter had 290 employees serving this market through 14 stocking locations loaded with a combined total of $30 million in inventory. Anixter's Emerging Markets business segment (Latin America and Asia-Pacific) is the company's fastest-growing geographic region, with a 2011 sales increase of 23% to $694.8 million. In total, the company did $4.9 billion in 2011 sales and has 7,500 employees in 46 countries.
Commenting on the acquisition in a press release, Bob Eck, president and CEO of Anixter, said, “The acquisition of Jorvex represents an important step with our Emerging Markets growth initiative while also leveraging Anixter's existing geographical presence and logistics capabilities. As a market leader, Jorvex immediately positions Anixter as a stronger and more significant player in the Andean market.”
The Jorvex acquisition is the second major move overseas for Anixter during the past year. Last October the company established a strategic partnership in Saudi Arabia with Mohawarean Trading Co. (MTC), through the formation of a new business entity, Anixter Saudi Arabia Limited. Anixter will hold the majority stake in the joint venture. This deal follows other Anixter investments in the United Arab Emirates, Oman and Qatar. When the MTC deal was announced last year, Anixter CEO Eck said in a press statement that Saudi Arabia offers a big opportunity for Anixter and its business partners because of that country's investments in infrastructure, strong economy, and strategic economic and geographic position in the Middle East markets that Anixter serves.
In other news at Anixter, the company recently announced that it had joined with CommScope, Inc., Hickory, N.C., a provider of infrastructure solutions for communications networks, to market a new mobile application specifically designed to address the enterprise needs of network integrators and contractors. The new app — cAnixter — provides a mobile platform for the browsing, selecting and quoting of CommScope's broad range of products. Designed for Apple's iPhone and iPad, cAnixter allows users to search for products specifications, locate related products, build bills of materials and request quotes. The real-time app allows customers to also quickly navigate through the entire collection of products by both Anixter's and CommScope's part numbers.