WESCO International Inc. (NYSE:WCC) is one of the 10 best industrial distribution stocks to invest in according to hedge funds.
The company’s acquisitive strategy leads to an optimistic narrative around the stock performance
On June 9, Wesco International Inc. (NYSE:WCC) announced that it has entered into a definitive agreement to acquire Newark Engineering. The target company, based in Singapore, focuses on providing critical infrastructure lifecycle services and engineered cooling systems designed especially for data centers. gualtiero boffi/ Some of the key aspects of this acquisition include Wesco taking full 100% ownership of Newark at a cash-free, debt-free purchase price of 175 million Singapore Dollars, which translates to about $136 million in US Dollars. Regarding financial performance, Newark generated approximately $60 million in total revenue over the course of the 2025 fiscal year.
With an attractive purchase multiple that is below the current trading multiple of Wesco, this transaction is structured to be immediately EBITDA margin accretive to the broader Wesco portfolio. Going ahead, the acquisition is anticipated to close in the third quarter of 2026, and the completion remains contingent on customary regulatory approvals and standard closing conditions. Analyst ratings are also backing a favorable view surrounding the stock.