Rexel SA Completes Acquisition Of Large Swiss Electrical Distributor

Feb. 9, 2006
Rexel SA, the largest electrical distributor in the world, completed the acquisition of Elektro-Material AG, a wholesale distributor of electrical material in Switzerland.

Rexel SA, the largest electrical distributor in the world, completed the acquisition of Elektro-Material AG, a wholesale distributor of electrical material in Switzerland.

Elektro-Material AG is a Swiss electrical wholesale distributor with 2005 revenues of approximately $225 million. It operates through seven branches and has 396 employees. The scope of its product offer is comparable to that of Rexel, consisting of electrical appliances, cables and conduits, lighting products, communication equipment and other electrical supplies. Its client base comprises mostly electrical contractors (74 percent of sales), but also industrial companies (11 percent) and utilities & other professional customers (15 percent). E-commerce represents 34 percent of sales.

Together with Rexel’s existing Swiss activity through its subsidiary Transelectro, the combined distribution business in Switzerland will represent annual sales of approximately $281 million.

This transaction reinforces Rexel’s presence in Central Europe and underscores Rexel’s determination to pursue its selective external growth strategy, the company said.

In other news, Rexel completed the sale of its Brazilian business to Ferramentas Gerais, the Brazilian leader in the supply of MRO parts on Dec. 8, 2005.

Previously active in several states in Brazil, Rexel Brazil posted 2004 sales of $43.7 million through a network of seven branches and 250 employees.