Category Archives: WESCO International

WESCO International, Inc – History

Westinghouse Electric Corporation formed WESCO in 1922, for the purpose of selling and distributing Westinghouse-manufactured products.

WESCO’s management team and Clayton, Dubilier and Rice (CD&R), a private investment company, purchased WESCO from Westinghouse In 1994.

WESCO Distribution management, with sponsorship from an investor group led by The Cypress Group, agreed to purchase WESCO from CD&R and other owners, in 1998. A new holding company was formed with the name of WESCO International.

WESCO International got listed on the New York Stock Exchange in 1999.

The company started growing through acquisitions. In 2001, it acquired Herning Enterprises, a utility distributor serving utility and telecommunications contractors in urban areas of California, Washington, Arizona, and Utah.

During 2003, WESCO completed $51 million mortgage financing including 75 properties located throughout the US. The proceeds of the loans were used to reduce the borrowings of the company under the revolving credit and the accounts receivable securitization facilities. In the following year, the company announced a public offering of four million shares of its common stock.

In July 2005, WESCO acquired the assets and business of Fastec Industrial Corp, an importer and distributor of industrial fasteners, cabinet and locking and latching products. WESCO International acquired Carlton-Bates, a distributor of resistors, capacitors, diodes, switches, relays, contactors, motor starters, fuses, cable and industrial controllers for MRO and OEM markets, in September 2005.

WESCO acquired Communications Supply Corporation, a national distributor of low voltage network infrastructure and industrial wire and cable products, in November 2006.

WESCO International, Inc – Business Description

WESCO International (WESCO) is a holding company, whose primary operating entity is WESCO Distribution. WESCO Distribution is involved in the distribution of electrical construction products and electrical and industrial maintenance, repair and operating (MRO) supplies. It operates in the US, Canada, Mexico, Puerto Rico, Guam, UK, Nigeria, United Arab Emirates (UAE), and Singapore.

WESCO has more than 400 full service branches and seven distribution centers located in the US, Canada, Mexico, Guam, the UK, Nigeria, UAE and Singapore. Out of the 400 branches, approximately 310 are located in the US, 50 in Canada, and remaining are located in Mexico, Puerto Rico, Guam, the UK, Nigeria, UAE, and Singapore.

WESCO’s customer base includes a range of industrial companies; contractors for industrial, commercial and residential projects; utility companies; and commercial, institutional and governmental customers.

WESCO provides distribution of product and services through its nine operating segments which have been aggregated as one reportable segment – the sale of electrical products and maintenance repair and operating supplies.

The company’s product range includes electrical supplies; industrial supplies; power distribution products; lighting products; wire and conduit products; control, automation, and motor products; and data communication products.

WESCO supplies products include lighting, including lamps (light bulbs and fluorescent tubes), light fixtures, ballasts and lighting controls; distribution equipment, including circuit breakers, transformers, switchgear, and busway; wire, cable, and conduit; control and automation equipment, such as industrial computers and controllers, man-machine interfaces, safety equipment, and motor control centers. It also includes data communications products, such as wiring, cabling, terminals, connectors, hubs, and routers; supplies, including batteries, fuses, fittings, safety equipment, ladders, tools, tape and other products.

The company also offers a range of services and procurement solutions. These include National Accounts Programs; which is designed to provide customers with total supply chain cost reductions by coordinating purchasing activity for MRO supplies and direct materials across multiple locations; and Integrated Supply Programs, which offers customers a variety of services to support their objectives for improved supply chain management.The company also provides other services such as supply management services, technical support for manufacturing process improvements, inventory optimization programs, joint cost savings teams, recommending energy-efficient product upgrades, safety and product training for customer employees, e-Commerce, WESCODirect.com, energy savings, export distribution services, industrial electronic repair management, and datacomm products and services.

WESCO International, Inc – Key Facts

Head Office

WESCO International, Inc

Suite 700

225 West Station Square Drive

Pittsburgh

Pennslyvania 15219

USA

Phone

1 412 454 2200

Fax

1 412 454 2505

Web Address

http://www.wescodist.com

Revenue / turnover (USD Mn)

5,320.6

Financial Year End

December

Employees

7,100

New York Ticker

WCC

WESCO International, Inc – Company Overview

WESCO International (WESCO) is a holding company, whose primary operating entity is WESCO Distribution. WESCO Distribution is a distributor of electrical construction products and electrical and industrial maintenance, repair and operating (MRO) supplies. The company primarily operates in the US. It is headquartered in Pittsburgh, Pennsylvania and employs about 7,100 people.

The company recorded revenues of $5,320.6 million during the fiscal year ended December 2006, an increase of 20.3% over 2005. The operating profit of the company was $365 million during fiscal year 2006, an increase of 74.4% over 2005. The net profit was $217.3 million in fiscal year 2006, as compared to a net profit of $103.5 million in 2005.