Anixter International Inc. Declares Special Dividend Of $4.50 Per Common Share

GLENVIEW, Ill., April 24, 2012 /PRNewswire/ -- Anixter International Inc. (NYSE: AXE), a leading global distributor of communication and security products, electrical and electronic wire & cable, fasteners and other small parts, today announced that its Board of Directors declared the payment of a special dividend to shareholders of $4.50 per common share, or a total cash outlay of approximately $150 million. The special dividend is payable on May 31, 2012 to shareholders of record on May 16, 2012.

Commenting on the special dividend payment, President and CEO Robert Eck, said, "Our continued strong cash flow generation of $780 million in the last three years has allowed us to reduce our outstanding debt by over 25 percent while also supporting the working capital requirements of our growing business. This substantial balance sheet deleveraging has resulted in a debt to total capital ratio of 44 percent at the end of the first quarter, which falls below our target range of 45–50 percent.  This presented us with the opportunity to return capital to our shareholders while still maintaining ample resources to support foreseeable growth."

"As we continually assess our current capital structure and how to best deploy excess capital available to the company, we have concluded that significant further deleveraging would not be the optimal use of cash at this time," continued Eck. "In addition, we ended the most recent quarter with significant excess liquidity of more than $350 million. While we continue to look for strategic acquisitions that can profitably grow our business, we will only enter into those transactions when both the strategic fit and the valuation make sense. The amount of cash used in this dividend payment does not preclude our ability to make future acquisitions."

"The management team, working closely with the Board of Directors, believes a special dividend payment of this amount benefits all current shareholders. Not only do our shareholders receive a direct cash benefit, but the company's capital structure and investment profile remain unchanged.  By making this payment in the form of a special dividend rather than committing to a regular dividend payment, we maintain the flexibility to utilize future cash flows to invest in the growth of the business as the global economy further improves," concluded Eck.

About Anixter

Anixter International is a leading global distributor of communication and security products, electrical and electronic wire & cable, fasteners and other small parts.  The company adds value to the distribution process by providing its customers access to 1) innovative inventory management programs, 2) more than 450,000 products and over $1 billion in inventory, 3) approximately 225 warehouses with 7 million square feet of space, and 4) locations in over 260 cities in more than 50 countries.  Founded in 1957 and headquartered near Chicago, Anixter trades on the New York Stock Exchange under the symbol AXE.

Safe Harbor Statement

The statements in this news release that use such words as "believe," "expect," "intend," "anticipate," "contemplate," "estimate," "plan," "project," "should," "may," "will,"  or similar expressions are forward-looking statements.  They are subject to a number of factors that could cause the company's actual results to differ materially from what is indicated here.  These factors include general economic conditions, the level of customer demand particularly for capital projects in the markets we serve,  changes in supplier sales strategies or financial viability, risks associated with the sale of nonconforming products and services, political, economic or currency risks related to foreign operations, inventory obsolescence, copper price fluctuations, customer viability, risks associated with accounts receivable, the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, and risks associated with integration of acquired companies.  These uncertainties may cause our actual results to be materially different than those expressed in any forward looking statements.  We do not undertake to update any forward looking statements.  Please see the company's Securities and Exchange Commission filings for more information.

Additional information about Anixter is available on the Internet at
www.anixter.com

SOURCE Anixter International Inc.