Rexel, distributor of electrical supplies, has acquired Suzhou Xidian in China. Rexel has been investing in China since 2000.
The acquisition is the second in China in the past 12 months.
Suzhou Xidian's 2007 sales were €38 million (US$55.6 million). The electrical supplies distributor has 115 employees and seven branches, six of which are in the Shanghai area and one in Beijing. It mainly serves the commercial and industrial markets.
Under the terms of the transaction, Rexel will hold 73.5% of the firm, and will increase its stake to 100% in three years.
The acquisition of Suzhou Xidian follows that of Huazhang Electric Automation in March 2007. Rexel posted 2007 pro-forma sales of 120 million euros (US$175.7 million), and has 580 employees in China.
For the past two years, Rexel has experienced over 35% Compound Annual Growth Rate in organic sales in Asia. The Group's 2007 pro-forma sales amounted to 167 million euros in Asia, which includes China, Indonesia, Malaysia, Singapore and Thailand, compared to 102 million euros of sales in 2006 on a pro-forma basis.
In Asia, Rexel serves Original Equipment Manufacturers (OEM), particularly through its Gexpro banner. Rexel has also developed large project management competency in the oil and gas markets for both onshore production fields and offshore platforms, as well as in high-end integrated resort construction. As an example, in 2007, Rexel provided the lighting design and equipment for all facilities of the 3,000 suites in the Venetian Macau hotel.
In 2008, Rexel, through its Gexpro subsidiary, plans to open new offices as a first step in two other emerging markets: India and Vietnam.