An American industrial giant is closing in on a £38.9 million deal to buy Midland inventory management company Infast.
The board of Infast, which employs 300 people at its Premier Automotive Division in Aston, has agreed a recommended cash offer from Anixter.
Anixter is listed and traded on the New York Stock Exchange with a market capitalisation of £761 million and assets of more than £1 billion in 45 countries.
The Chicago company said it was aiming for rapid growth by increasing the number and range of products Infast could supply to manufacturers.
The combined value of sales at the two company's inventory arms could break through the $1 billion sales barrier following the deal.
Dennis Letham, chief financial officer at Anixter, said the acquisition would enable Infast to benefit from the scale of his firm.
"We think the new combined business unit has the potential in the next couple of years be a $1 billion segment for us. It is about $750 million at the moment, so we are three quarters of the way there."
Mr Letham said it was too early to say what would happen to the Aston arm of the Infast business. "We plan to learn more about the business and we want to create a world class company using the best of both."
Infast's Birmingham operation numbers Jaguar and Land Rover among its customers while Anixter, which provides electrical and wire parts to firms, also feeds components into diesel engine manufacturer Cummins.
Earlier this year Infast pulled out of the manufacturing sector to focus on inventory management.
Last year it had sales of £157.1 million and profits of £3.1 million before tax, interest and exceptionals.
The 34p per share offer has been made through the Birmingham office of KPMG, which also advised on the deal, while Eversheds provided legal support for Infast.
The offer was a premium of almost 50 per cent on the 22.75p price per share on April 12, the last dealing day prior to the announcement by Infast that it had received an approach.
The approach was unanimously accepted by the Infast board.
The Anixter Group serves over 90,000 customers with 275,000 products from nearly 3,500 manufacturers.
It has 5,600 employees, based in 45 countries and processes more than 8,000 customer orders each day.
Mr Letham said his firm had been attracted by its portfolio of large customers which he was confident could be grown rapidly.
Graham Titcombe, chairman of Infast, said the link-up was a "nice fit" between two complimentary firms.
He said: "We believe a combination of Infast and Anixter will enhance our ability to achieve our business goals more speedily than would have been the case as an independent company."