Pinault Printemps Redoute said it has finalized a deal to sell its stake in Rexel, the world’s largest electrical distributor, to a group of companies. The deal is expected to close in first-quarter 2005.
Last month, the luxury goods and retailing group said it wanted to focus on luxury goods instead of pipe and wire so it entered exclusive talks to sell its 73.45 stake in Rexel to a consortium formed by three investment groups: Clayton, Dubilier and Rice (CDR), New York; Eurazeo, a French investment firm; and Merrill Lynch Private Equity, New York.
The deal will be the biggest leveraged buyout in Europe this year, the consortium of investment firms said in a statement.
The offer price in the negotiations was 38.5 euros per share, giving Rexel an enterprise value of 3.7 billion euros, which is 15 times its 2003 operating profit, PPR said.
Rexel SA has 1,700 branches and 21,300 employees and approximately $8.2 billion in annual sales. The company’s U.S. division has 280 locations, 4,400 employees and 2003 sales of $1.9 billion.