Anixter International Inc.
Thesis
Sam Zell acquired Anixter at 2x book value, realizing that the true value lay in its ownership of a key distribution pipeline rather than just the distribution business itself. This strategic insight led to significant revenue growth over the years.
Did it work?
The pitch was a long thesis premised on Zell's insight that Anixter's distribution pipeline ownership would drive value creation, and while the narrative of significant revenue growth did occur historically, the actual price performance decisively contradicts the long direction: the stock fell 94.3% over the ~40 years since the pitch. With nearly four decades elapsed — far beyond any plausible stated horizon — a near-total loss of shareholder value means the thesis did not translate into investment returns. Whatever operational success the distribution business achieved, it was not reflected in the equity's performance.