Koch Industries buys Molex for $7.2 billion

Deal called 'an exciting acquisiton' and a 'new platform for growth'

09/09/2013


Molex has always been a family business as it grew from a small firm in suburban Chicago to a global leader in connectors and connection systems. On Sept. 9, it was announced that Molex has switched families.

Molex will be acquired by Koch Industries Inc., a privately held Wichita, Kan.-based company with interests in oil and gas and technology. Its best-known current holding before Molex was Georgia-Pacific.

The $7.2 billion acquisition transfers ownership of Molex from the Krehbiel family to the Koch family, whose principal owners Charles and David Koch are frequently in the news for their interests in political issues.

Founded by Frederick Krehbiel in 1938 as a company which manufactured molded thermoplastics, Molex began as a small company in Lisle, Ill. and grew into a global brand during its history. "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,” said Fred Krehbiel, co-chairman of the Molex board. “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,"

Koch Industries officials said they plan to keep Molex operating as a separate subsidiary of the company, retaining the current management team and headquarters while finding opportunities to leverage company products and innovation in other areas of Koch Industries.

"For our customers and employees, this transaction will allow us to build on Molex's proud past and strengthen us for a powerful future. We are excited to work with Koch to continue our track record of growth and investment in people, innovation and technology," said Martin Slark, vice chairman and chief executive officer of Molex.

Charles Koch, chairman and chief executive officer of Koch Industries, called 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," Koch said. "We look forward to jointly applying the capabilities of our two companies to help take both to the next level."



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
System integration: Best practices and technologies to help; Virtualization virtues; Cyber security advice; Motor system efficiency, savings; Product exclusives; Road to Hannover
Collaborative robotics: How to improve safety, return on investment; Industrial Internet of Things, Industrie 4.0: World views; High-performance HMI, Information Integration: OPC and OMG
9 tips: How to integrate a servo system; Process control mathematical models; Serial network grounding; Engineers' Choice Awards; Learn from cyber security mistakes
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
PLCs, robots, and the quest for a single controller; how OEE is key to automation solutions.
Learn how Industry 4.0 adds supply chain efficiency, optimizes pricing, improves quality, and more.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
click me