Now, Zell is teaming up with former Anixter President and CEO Bill Galvin to build a new business. With a name that won’t win any branding awards—Equity Distribution Acquisition—the company aims to gobble up businesses in a fragmented but huge distribution market, estimated at about $2.5 trillion, according to the prospectus. For its first deal, it plans to identify a target company with a combined debt and equity value of $1 billion to $1.5 billion.
Blank-check companies—also known as special purpose acquisition companies, or SPACs—have become a trendy way to raise money these days. They’re corporations without any operating assets that sell their shares in an initial public offering, using the money raised to go out and buy one or more businesses, almost like an investment fund would. Billionaire investor Bill Ackman recently raised $4 billion for the largest blank-check company ever. Even former U.S. House Speaker Paul Ryan is