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Acquisition in Asia


REXEL ACCELERATES GROWTH IN ASIA
Acquisition of Suzhou Xidian in China

Rexel, leading distributor worldwide of electrical supplies, is accelerating its growth in Asia and reinforcing its position in the Chinese market with the acquisition of Suzhou Xidian. Rexel has been investing in China since 2000 and has become a leading international distributor of electrical supplies in a country where professional distribution is beginning to play a more important role.

This acquisition, the second in China in the past twelve months, further demonstrates Rexel’s determination to establish a solid position in a region that is growing strongly, and represents significant opportunities in the medium to long-term, while reinforcing relationships with strategic suppliers.

Suzhou Xidian acquisition in China

This acquisition represents a new step in the creation of a growth platform in the very dynamic Chinese market. Suzhou Xidian’s 2007 sales amounted to approximately 38 million euros and its growth rate is higher than the average market growth rate in China. The electrical supplies distributor has 115 employees and 7 branches, 6 of which are in the Shanghai area and one in Beijing. It mainly serves the commercial and industrial markets. With this acquisition, Rexel’s customers will benefit from a wider range of products, improved services and greater proximity.

Under the terms of the transaction, subject to approval by relevant authorities, Rexel will hold 73.5% of Suzhou Xidian and will increase its stake to 100% within 3 years.

The acquisition of Suzhou Xidian follows that of Huazhang Electric Automation in March 2007. With a particularly strong presence in the Shanghai and Beijing regions, Rexel posted 2007 pro-forma sales of 120 million euros, and has 580 employees in China.

Strong growth in Asia

For the past two years, Rexel has experienced over 35% Compound Annual Growth Rate in organic sales in Asia. The Group’s 2007 pro-forma sales amounted to 167 million euros in Asia, which includes China, Indonesia, Malaysia, Singapore and Thailand, compared to 102 million euros of sales in 2006 on a pro-forma basis.

In Asia, Rexel has been successful in providing supply chain solutions to Original Equipment Manufacturers (OEM), particularly through its Gexpro banner. Rexel has also developed large project management competency in the oil and gas markets for both onshore production fields and offshore platforms, as well as in high-end integrated resort construction. As an example, in 2007, Rexel provided the lighting design and equipment for all facilities of the 3,000 suites in the Venetian Macau hotel.

In 2008, Rexel, through its Gexpro subsidiary, plans to open new representation offices as a first step in two other emerging markets: India and Vietnam. These two new openings will consolidate Rexel’s number one position in the Asia-Pacific market.


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