US global industrial conglomerate Koch Industries has announced it will buy electronics components firm Molex Inc for $US7.2 billion.
As AFP reports, Molex manufacturers electronic, electrical and fibre optic interconnection systems to several markets. These include the consumer electronics and automotive, infotech and automotive sectors.
Molex reported sales of $3.6 billion for the fiscal year to June 30.
Koch Industries has agreed to pay Molex's shareholders $38.50 per share. This represents a premium of approximately 42 per cent average to Friday's close.
Koch Industries is run by the billionaire brothers Charles and David Koch. According to Chief executive Charles Koch, the deal "provides a significant new platform for growth."
He said that the deal was "an exciting acquisition that matches up well with our culture and our core capabilities."
The agreement has won the approval of the Molex and the Koch boards. It is likely to close by the end of the year. When it does, Molex will become a standalone unit of Koch Industries and will continue under the current management team.
Commenting on the deal, Molex co-chairman Fred Krehbiel 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."