Global electrical distributor Rexel
held its Investor
Day last week, at which it gave a comprehensive overview of its plans for the next couple of years. The presentation was posted
on the Rexel Web site. (Look for a detailed report of the meeting in the Dec. 25 issue of MDM Premium
Hear Gexpro CEO Mitchell Williams speak at the MDM Webcast, Ready for the Rebound? Position
Now to Take Market Share.
It seems like distributors
are starting to consider acquisitions again after a long dry spell in 2008-2009, and Rexel is no exception. As part of
its strategy through 2012, Rexel plans to continue growing through select acquisitions both in mature and emerging global
Of course, acquisitions are not a new thing for Rexel. From 2005 to 2008, the distributor implemented 24
bolt-on acquisitions (with less than €50 million in sales); five "mid-sized" acquisitions (with €50 million
to €200 million in sales); and of course, two "transforming acquisitions," as the company describes them. The
distributor acquired Gexpro (formerly GE Supply) in 2006, and Hagemeyer's operations in Europe in 2008. The Gexpro
doubled the size of Rexel's operations in the U.S., while the Hagemeyer
increased its market share in Europe from 12 percent to 18 percent, according to Rexel estimates.
So where will the acquisitive distributor focus its resources going forward?
to strengthen its market share in North America and key European markets. Rexel also has plans to expand in emerging markets.
It noted China, Southeast Asia and India, as well as Mexico and Brazil.
Most notably, the distributor
plans to double sales in China by 2012. Currently, according to the presentation, the distributor has about €200 million
in sales in China.
Overall, emerging market sales will account for 5 percent of overall sales
Get more analysis on M&A deals with an impact on the
distribution channel by upgrading to MDM Premium.
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