In a move that had shares increasing 31% in a.m. trading, Molex (MOLX) will be bought out by Koch Industries for an estimated $7.2 billion.
The transaction is expected to be finalized by the end of the year.
Molex produces electronic components for products such as Apple (AAPL) iPhones and other devices. Koch has a stake in a number of fields, including fertilizer makers and commodity-trading services.
The deal will turn Molex into a stand-alone division of Koch, with the company retaining its name and headquarters in Lisle, Illinois. Molex sells interconnection systems to automakers, mobile-phone companies and military customers. That includes Apple, which uses some Molex connectors for the iPhone 5, the top-selling smartphone.
For Koch, the transaction is its biggest deal in eight years and provides a “significant new platform for growth,” the company said. The acquisition is the second-largest in Koch’s history, after the 2005 purchase of Georgia-Pacific Corp. for $13.2 billion, excluding debt, according to data compiled by Bloomberg. The company said today that it has spent about $50 billion in acquisitions and capital spending since 2003.