23 Jul 2024


Koch Industries buys connector-maker Molex for $7.2bn

Molex, the US-based manufacturer of connectors, communications equipment and electronic components, is being bought by Koch Industries, one of the world’s largest private companies, for around $7.2bn. The deal has been approved by both boards of directors.

Molex will become a standalone subsidiary of Koch Industries and will continue to be run by its current management team. Molex will keep its name and its headquarters in Lisle, Illinois. The parties are aiming to close the deal by the end of 2013.

“After 75 years this was a difficult decision, but our board of directors and our family believe that this transaction … provides outstanding benefits for all our stakeholders,” says Molex co-chairman, Fred Krehbiel. “Importantly, our shareholders will receive a significant premium and compelling value for their holdings. The transaction is expected to provide substantial opportunities for our worldwide employees, many of whom have spent much of their working lives at Molex and are responsible for the company’s long term success.”

Charles Koch, chairman and chief executive officer of Koch Industries, considers Molex “an exciting acquisition that matches up well with our culture and our core capabilities. It also provides a significant new platform for growth.

“Molex has become a global leader by focusing on product innovation and value creation, driven by its talented leadership and employees,” he adds. “We look forward to jointly applying the capabilities of our two companies to help take both to the next level.”

Molex operates 41 manufacturing locations in 15 countries and employs more than 35,000 people globally. It offers around 100,000 products and its sales for the year ended June 30, 2013 were $3.6bn. Its industrial communications brands include Brad and Woodhead. More than 70% of Molex’s revenues come from outside the US.

Koch Industries is one of the largest private companies in the US with annual revenues of about $115bn. It owns a diverse group of companies involved in: refining, chemicals and biofuels; forest products; fertilisers; polymers and fibres; process and pollution control; minerals; commodity trading; ranching; glass; and investments. Since 2003, Koch has spent about $50bn on acquisitions and other capital expenditures and now employs about 60,000 people worldwide.