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.
