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Koch Industries to buy Molex for $7.2 billion

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)

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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