Consolidation in the electrical space ramped up last month, led by some of the largest distributors making strategic purchases – one of the trends identified for the sector in 2016.
France-based electrical distributor Sonepar – parent of Sonepar North America, No. 1 on MDM's list of the Top 25 Electrical Distributors – has agreed to acquire Belgium-based electrical wholesaler Cheyns NV. The company, which has 180 associates and 10 branches, reported 2015 sales of €70 million (US$78 million).
Graybar, St. Louis, MO – No. 3 in the electrical sector – a distributor of electrical, communications and data networking products and provider of related supply chain management and logistics services, agreed to acquire Cape Electrical Supply, Cape Girardeau, MO.
Cape Electric, a regional distributor serving electrical contractors and large engineering construction firms, as well as industrial, institutional and utility customers, reported sales of $126 million in 2015. It will continue to operate under the Cape Electrical Supply name as a subsidiary of Graybar.
And no. 7 Border States Electric, Fargo, ND, a wholesale electrical product and solution supplier, ventured into the Southeast with the acquisition of Shealy Electrical Wholesalers, based in North and South Carolina.
Shealy, an electrical wholesale supplier with 350 employees and 17 locations, will become Shealy Electrical Wholesalers, a division of Border States. Border States is also opening a regional office in Columbia, SC, with Shealy President David White serving as the Southeast region's vice president.
Also, Dansville Electrical Supply has agreed to be purchased by V.P. Supply Corp., Rochester, NY. All former Dansville Electrical employees and management will continue to operate at the current location under the name Dansville Electrical Supply, a division of V.P. Supply.
Here are other key deals that occurred in June 2016: