Strengthening its position in the Atlanta market, Rexel Inc, Dallas, has acquired DH Supply Co., a distributor of electrical and telecommunication products with six locations in the greater Atlanta area.
The acquisition comes just a few months after Rexel’s purchase of GE Supply, Shelton, Conn. Based in Doraville, Ga., DH Supply, with 115 employees and six branches in Cartersville, Conyers, Doraville, Douglasville, Kennesaw and McDonough, posted $70 million in revenue in 2005. The branch in Doraville serves as the company’s headquarters and main hub facility. DH Supply’s electrical customers include commercial contractors, industrial facilities, telecommunications customers and power utilities. DH Supply is the nation’s 96th largest electrical distributor, according to Electrical Wholesaling’s 2006 listing of the Top 200.
The acquisition was completed on Sept. 8. The business will operate under the trade name Rexel DH Supply, taking advantage of both Rexel’s national name recognition and DH Supply’s local business reputation, Rexel said.
The Atlanta and Georgia market continues to provide excellent opportunities for growth in all market segments. Commercial development continues to be very strong, said Mark Daniel, Rexel’s vice president of development.
Former owner, David Hicks Jr., will remain with the business, which allows for a smooth integration and continued long-term success. He will serve as general manager of Rexel DH Supply. The Rexel DH Supply branches, along with four Rexel locations in College Park, Conyers, Marietta and Tucker, will join Rexel Inc.’s South East Division.
With this acquisition, Rexel doubles its locations and sales in the Atlanta area. “DH Supply is a strong addition to the Rexel family of companies,” said Daniel Palumbo, senior vice president and CEO of Rexel Inc. “Their diverse product offering and expertise in the telecom industry offers a new opportunity for Rexel in the bustling Atlanta area.”
In the telecom industry, DH Supply has focused its expertise on outside plant telecommunications products, including fiber optic cable and installation products, said Daniel.
Rexel recently formed a U.S. holding company, International Electric Supply Corp. (IESC), headquartered in Dallas, following its acquisition of GE Supply. IESC oversees the separately managed and operated businesses of Rexel Inc. and GE Supply. Since completion of the recent acquisitions in the United States, Rexel employs more than 7,200 people at over 450 locations in 45 U.S. states. The company’s sales in the United States exceed $5 billion on a 2005 pro-forma basis.
In other news, Rexel acquired Kesco Electric Supply Ltd., an electrical distributor in Peterborough, Ontario, July 31. Kesko Electric has been in business for more than 65 years. The company had sales of about $5.9 million in 2005. The newly acquired business will operate under the Nedco banner, one of Rexel’s two divisions in Canada.