UPDATE: William Blair Downgrades Molex to Market Perform Following Announcement of Acquisition by Koch Brothers

In a report published Tuesday, William Blair & Company analyst Anil Doradla downgraded the rating on Molex (NASDAQ: MOLX) from Outperform to Market Perform.

In the report, William Blair & Company noted, “We are downgrading Molex shares to Market Perform from Outperform. On Monday, September 9, before the markets opened, Molex announced that it has agreed to be acquired by Koch Industries, a Wichita-based private company that has spent $50 billion in acquisitions and other capital expenditures over the last 10 years. The deal values Molex's enterprise at 1.9 and 1.7 times our calendar 2013 and 2014 sales estimates, respectively. At $38.50 per share, the deal values Molex equity at roughly $7.2 billion, a premium of 31% and 56% relative to Friday's closing prices for common and Class A shares, respectively. Molex's board of directors has approved the deal, including certain Krehbiel family members and executive officers, which account for 32% of common stock and 94% of Class B shares. The deal is expected to close near the end of the year.”

Molex closed on Monday at $38.63.