Rexel becomes a leader in the Brazilian market through two new acquisitions
Rexel, a global leader in the distribution of electrical supplies, announces the acquisition of two companies in Brazil: Delamano and Etil.
Through these two acquisitions, the Group:
– Consolidates its leading position in Brazil, after the acquisition of Nortel Suprimentos Industriais in January 2011,
– Becomes the No.1 in the state of São Paulo, the richest and the most populous Brazilian state,
– Increases its sales in emerging markets, in line with its external growth strategy.
Rexel becomes a leader in the Brazilian market and the No.1 in the state of São Paulo
Brazil is one of Rexel’s key priorities in its external growth strategy, which aims notably at expanding the Group’s presence in emerging countries. The size of Brazil’s domestic market, its wealth in raw materials and its growth rate, combined with the opportunities linked to hosting major international events such as the Soccer World Cup in 2014 and the Olympic Games in 2016, offer strong growth prospects for the coming years.
Through the acquisitions of Delamano and Etil, Rexel adds combined annual sales of c. €100 million to the c. €120 million sales that Nortel Suprimentos Industriais contributed to Rexel’s consolidated net in sales in 2011. In 2011, Nortel Suprimentos Industriais posted strong organic same-day growth of 12.5%.
The two new acquisitions consolidate Rexel’s leading position in the fast-growing Brazilian market and make it the No.1 in the state of São Paulo, which accounts for one-third of Brazil’s GDP and 22% of the nation’s population.
Both acquisitions will be consolidated as from January 1st, 2012 and will be accretive from the first year.