Koch Industries buys Molex for $7.2 billion

Koch Industries buys Molex for $7.2 billion

September 10th, 2013 by Wire Service , Staff Report in Business Around the Region

LISLE, Ill. - Koch Industries Inc. is buying electronic components and cables maker Molex for approximately $6.86 billion.

Koch -- run by the billionaire brothers Charles and David -- said Monday that it will pay $38.50 per Molex Inc. share. That's a 31 percent percent premium to the company's $29.34 Friday closing price.

The companies put the deal's total value at about $7.2 billion.

Molex Inc. has about 178.2 million outstanding shares, according to FactSet.

It will remain headquartered in Lisle, Ill. and keep its current management team. Molex will also keep its company name and will run as a Koch subsidiary.

Koch, based in Wichita, Kan., owns a variety of businesses.

Both companies' boards approved the transaction, which is expected to close by year's end. It still needs shareholder approval.

Koch Industries is the parent company of Invista, a chemical and fiber manufacturer which operates a major production facility on Access Road in Chattanooga.