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Global electrical distributor Rexel has agreed to acquire Platt Electric Supply, distributor of electrical products & services in the Western U.S.
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“Through the acquisition of Platt Electric Supply, Rexel is significantly expanding its footprint in the U.S. and strengthening its market position in a key region,” said Rudy Provoost, CEO. “Platt’s strong geographic and strategic fit with our existing operations in the U.S. will create significant value for Rexel and its shareholders.” Following this acquisition, Rexel estimated its market share in the region will be more than 10 percent.
Read more about why Rexel bought Platt Electric Supply in this blog from MDM. This acquisition supports one of Rexel’s top external growth priorities: strengthening its market share in key mature markets where it is already present. This acquisition represents an investment of c. €300 million (enterprise value) for Rexel and will be accretive by the end of 2013.
Jeff Baker, president of Platt Electric Supply, will become president and CEO of Platt Electric Supply and will become vice president of Rexel Inc. He will assume an enhanced leadership role on several key initiatives for the broader Rexel business in the U.S.
The transaction, subject to customary conditions, should close in early July and Platt Electric Supply’s operations should be consolidated from July 2012.
Platt Electric Supply is a family-owned company based in Beaverton, OR, with 111 branches in seven states and two logistics centers. It had sales of c. €310 million (US$394 million) in 2011 and had 1,000 employees.
Platt Electric Supply serves electrical contractors, industrial facilities and commercial businesses with electrical and energy efficiency products and services.
Operating from nearly 300 branches across the country, Rexel provides products and services to the commercial, industrial and residential end-markets. In 2011, Rexel’s American operations contributed over €2.5 billion to the group’s consolidated sales.