On Dec. 8, 2005, Rexel, the largest electrical distributor in the world, completed the sale of its Brazilian business to Ferramentas Gerais, the Brazilian leader in the supply of MRO parts.
Active in several states in Brazil, Rexel Brazil posted 2004 sales of $43.7 million through a network of seven branches and 250 employees. With this sale, Rexel is withdrawing from a country where its market share and projected profitability levels were not in line with the group’s objectives, the company said.
By joining Ferramentas Gerais, a key player in the sector, Rexel Brazil will have better opportunities for growth.
Through this purchase, Ferramentas Gerais, which has about 1,900 employees and sales of $279.4 million, expands its market coverage by doubling the sales outlets in its network, and completes its offering of electrical equipment products.