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Koch Industries to buy Molex for $7.2 billion

Monday, 9 Sep 2013 | 8:45 AM ET
Tim McClean Photography | E+ | Getty Images

Molex, a maker of electronic connectors and cable assembly products, said privately owned energy and chemicals conglomerate Koch Industries will buy it for about $7.2 billion.

The deal for $38.50 per share in cash represents a 42 percent premium on average to the Friday closing prices of Molex's two classes of publicly traded shares, Molex said.

Molex will become a standalone unit of Koch Industries and will continue to be run by the company's current management.

(Read more: M&A set to surge following Vodafone's bumper deal)

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Koch Industries, which owns brands such as Brawny paper towels and Dixie Cups, is controlled by brothers Charles and David Koch, two of the world's richest men.

William Blair & Co. and BDT & Co. are financial advisers to Molex, while Goldman Sachs provided a fairness opinion and other financial advice, the company said.

(Read more: Let's make a deal: Taper talk is awesome for M&A)

By Reuters

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