Rexel expands its presence in the USA with the strategic acquisition of Platt Electric Supply
Rexel, a global leader in the distribution of electrical supplies, announces it has reached agreement to acquire Platt Electric Supply, a premier independent distributor of electrical products & services in the Western U.S.
Platt Electric Supply significantly reinforces Rexel’s position in the U.S, one of the world’s largest markets for electrical supplies, and strengthens its market share in the Western part of the country. Following this acquisition, Rexel’s market share in this region, which is expected to grow at a faster rate than the overall U.S. market, will exceed 10%.
This acquisition supports one of Rexel’s top external growth priorities:strengthening its market share in key mature markets where the Group is already present. Platt’s business model focused on organic growth, its strong financial performance, outstanding customer service, experienced and well-trained employees, strong brand recognition and innovative use of technology constitute solid assets on which to build in the future.
This acquisition represents an investment of c. €300 million (enterprise value) for Rexel and will be accretive by the end of 2013.
Jeff Baker, President of Platt Electric Supply, will become President and CEO of Platt Electric Supply and will become Vice-President of Rexel Inc. He will assume an enhanced leadership role on several key initiatives for the broader Rexel business in the U.S.
The transaction, subject to customary conditions, should close in early July and Platt Electric Supply’s operations should be consolidated from July, 2012.