Rexel strenghthens its operations in Switerzerland through the acquisition of Grossauer
Rexel, a global leader in the distribution of electrical supplies, has closed the acquisition of Grossauer, the fourth-biggest distributor of electrical supplies in Switzerland.
Established in 1956, Grossauer is a family-owned company based in the eastern part of Switzerland.
Grossauer’s estimated sales for 2010 amount to c. €50 million. Grossauer occupies a strong market position in this part of the country through its single branch in Heiden. The company has a solid presence in the industrial segment and is well-known for its very strong customer relationships.
About Rexel’s operations in Switzerland: Elektro-Material
Rexel operates in Switzerland through its subsidiary Elektro-Material, the Nr1 distributor of electrical supplies in the country.
Elektro-Material currently operates through 8 branches (Basel, Bern, Geneva, Lausanne, Lugano Luzern, Sion and Zurich). In the first nine months of 2010, Elektro-Material’s contribution to Rexel’s consolidated sales amounted to €209 million, up 7.9% year-on-year on a constant and same-day basis.
Acquisition of Grossauer will significantly strengthen Rexel’s operations in Switzerland
This acquisition is part of Rexel’s external growth strategy aimed at increasing its market share in key mature countries where it currently operates.
Thanks to the good geographical fit between the 8 branches operated by Elektro-Material and the branch acquired from Grossauer, Rexel will be able to expand its territorial coverage in Switzerland. This acquisition will also accelerate the development of Rexel’s sales to industry in the country, leveraging on Grossauer’s experience, skilled sales force and strong customer relationships.
The Grossauer business will be fully integrated into Elektro-Material’s operations and will contribute to increasing Rexel’s annual turnover in Switzerland by more than 15%.
This acquisition will be accretive from the first year of the acquisition.