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Electricalmarketing 158 Rexelhomepagecapture595
Electricalmarketing 158 Rexelhomepagecapture595
Electricalmarketing 158 Rexelhomepagecapture595
Electricalmarketing 158 Rexelhomepagecapture595
Electricalmarketing 158 Rexelhomepagecapture595

Rexel Buys Distributors in Three Countries

Aug. 8, 2014
Headquartered in Riyadh, Rexel Arabia Electrical Supplies, of which Rexel will own a 65% stake, will address both large-scale projects and the traditional electrical distribution market.

Rexel announced two bolt-on acquisitions and one joint venture in its July 30 financial report. At the end of July, Rexel acquired Elevite, a specialized lighting solutions distributor, addressing electrical installers, industrial and facility management companies. Founded in 1993 close to Zurich, Elevite employs 54 people and posted sales of €24 million and adjusted EBITA margin above the Rexel Group’s average in 2013.

Also in July, Rexel signed the acquisition of Beijing Ouneng, an automation-focused electrical distributor with an ABB franchise. Founded in 1996, the Beijing-based company addresses automation companies through 14 branches and employs 135 people. It posted sales of €34 million in 2013, mainly to the highly industrialized Beijing mega-cluster, and adjusted EBITA margin above the average of Rexel’s Chinese operations.

Rexel also announced a joint venture in Saudi Arabia to increase its penetration in the oil and gas segment. The joint venture is with Al-Hobayb Group, a Saudi group with expertise in the electrical industry. Headquartered in Riyadh, Rexel Arabia Electrical Supplies, of which Rexel will own a 65% stake, will address both large-scale projects and the traditional electrical distribution market. It targets annual sales of €25 million by 2017.

In other Rexel news, the company announced its 2014 half-year sales results. The company reported a 3% increase in its North American sales over the first quarter, and marginal growth year-over-year on a global basis for the first six months of 2014 compared to the same period last year.