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Electrical distributor Rexel reported sales were up 3.5% in the first nine months of 2007 to 7.9 billion euro (US$11.5B). Profit before IPO costs was up 57%.
During the third quarter of 2007, Rexel saw continued growth in Europe and Asia-Pacific, led by the industrial and commercial end-markets while sals trends in North America were comparable to the second quarter. & hellip; Looking ahead, our proposed full-cash offer for Hagemeyer marks our confidence in the quality of Rexel's business model and would provide compelling development opportunities for our Group," says Jean-Charles Pauze, CEO.
Rexel is in negotiations to acquire Hagemeyer NV for $4.5 billion, based on current exchange rates. The offer is 4.85 euro per share. Rexel would then sell the American, Asia-Pacific and some of the European assets to rival Sonepar.
Sales in the third quarter 2007 were up 1.4% overall, despite cable price deflation in Europe and North America, without which organic growth would have been 1% higher.
In Europe, sales were up 7.4% for the first nine months 2007, with double-digit growth in Austria.
In North America, sales were down 1.7% in the first nine months; in the U.S. sales fell 2.6% due to a decline in residential construction and residential-related commercial projects. Rexel saw double-digit growth at the Gexpro level (formerly GE Supply), notably on large project management.
Canada sales grew 2.3%, led by the mining and building markets in the West, as well as commercial activity in Quebec.