Hagemeyer Archives

Hagemeyer Organic Growth of 4.3% in 2007

Electrical distributor and integrator Hagemeyer NV reported sales of €6.4 billion in 2007 (US$9.4 billion at current exchange rates). Organic revenue growth was 4.3% for the year, decreasing from 5.7% in the first half to 3.1% in the second half.

About 75% of the organic revenue growth for the year can be attributed to price increases.

In 2007, revenue for the Professional Products and Services business was €6 billion, compared to €5.8 billion in 2006. Organic growth was 4% in 2007. Copper price fluctuations did not have a noticeable impact on Hagemeyer's revenue, unlike in 2006 when they accounted for a revenue increase of 7%. Organic growth is almost exclusively attributable to price increases, of which the largest part was ...

February 20, 2008

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Rexel Pushes Ahead With Offer for Hagemeyer

Paris-based electrical distributor Rexel confirmed that it will keep its bid of & euro; 4.85 per share for Dutch rival Hagemeyer NV, a total of about & euro; 3.1 billion (US$4.5 billion).

Analysts and industry-watchers questioned whether the company would move ahead with its takeover bid or reduce the offer after Hagemeyer was ordered to pay & euro; 50 million in advance damages over the bankruptcy of a former ...

December 19, 2007

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Rexel Still Considering Whether to Change Bid for Hagemeyer

French electrical distributor Rexel is still looking at whether it will lower or drop its bid for Dutch rival Hagemeyer NV, according to Reuters news service. The question comes after Hagemeyer was ordered to pay & euro; 50 million in advance damages over the bankruptcy of a former subsidiary.
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The Financial Times in London however said Rexel was pushing ahead with its & euro; 3.1 billion takeover offer. The Reuters article contradicted that report.
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Still, Hagemeyer has said the details about the lawsuit were public, as well as the timing of the case. The Financial Times said that Hagemeyer in its 2006 annual report estimated damages in the case to be & euro; 160 ...

December 18, 2007

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Hagemeyer Ordered to Pay US$73M in Damages

The Netherlands-based electrical distributor Hagemeyer NV, which recently agreed to be bought by Paris-based Rexel, was ordered by a judge to pay & euro; 50 million (US$73 million) in bankruptcy-related damages.
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The case involves Ceteco, which went into bankruptcy in 1998 and started proceedings against Hagemeyer, former members of Hagemeyer's board of management, supervisory board and the accountant of Ceteco. The company claimed mismanagement led to the bankruptcy. Hagemeyer owned 65% of Ceteco.
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Though some are speculating that the judgment may affect Rexel's deal with Hagemeyer in the form of a reduced offer or a rescinding of the offer overall, a Hagemeyer spokeswoman told Reuters that the case was not news to Rexel. They know about this. This court case ...

December 12, 2007

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Rexel, Hagemeyer Reach Agreement for Sale

Rexel and Hagemeyer have reached an agreement on Rexel's all-cash offer of & euro; 4.85 for Hagemeyer's assets, valuing the company at & euro; 3.1 billion (US$4.5 billion).
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The offer was approved by the boards of Rexel, Sonepar and Hagemeyer.
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Rexel has secured committed debt financing.
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As previously announced, Rexel has agreed to sell Hagemeyer's North American, Asian-Pacific and selected European businesses to Sonepar after completion of the sale.
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The overall transaction will combine the strengths of three major players in the distribution of electrical supplies. The transaction will broaden Rexel's footprint across Europe, while significantly consolidating Sonepar's positions in North America and Asia-Pacific.
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November 26, 2007

Finance

Hagemeyer Accepts Buyout Terms

Electrical distributors Rexel and Hagemeyer have reached an agreement on Rexel's all-cash offer of & euro; 4.85 for Hagemeyer's assets, valuing the company at & euro; 3.1 billion (US$4.5 billion).

The offer was approved by the boards of Rexel, Sonepar and Hagemeyer. Rexel has secured committed debt financing for the all-cash offer.

As previously announced, Rexel has agreed to sell Hagemeyer's North American, Asian-Pacific and selected European businesses to Sonepar after completion of the sale.

The overall transaction will combine the strengths of three major players in the distribution of electrical supplies. The transaction will broaden Rexel's footprint across Europe, while significantly consolidating Sonepar's position in North America and ...

November 25, 2007

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Rexel in Negotiations to Acquire Hagemeyer for $4.5B

Hagemeyer and Rexel entered exclusive negotiations aimed at finalizing an agreement under which Rexel would make an all-cash offer of & euro; 4.85 per share, approximately 3.1 billion euro in total, or US$4.5 billion. Under the agreement, Hagemeyer's Management and Supervisory Boards would recommend Hagemeyer accept this offer.
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The offer is up from Rexel's original bid of & euro; 4.60, which had valued the company at US$4.3 billion.
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Rexel's agreement with Sonepar will stand. As part of that agreement, Rexel will sell Sonepar the American, Asian-Pacific and select European activities of Hagemeyer.
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For Rexel's part, in the original proposal, it said it would acquire Hagemeyer's Professional Products & Services (PPS) activities in the Baltic ...

November 12, 2007

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Hagemeyer Acquires Another Firm in Latvia

Dutch distributor Hagemeyer has acquired SIA Energo, an electrical distributor in Latvia. The acquisition of Energo, through Hagemeyer's fully-owned Finnish subsidiary Elektroskandia Oy, follows on the acquisition of Kolorits, announced earlier this week.
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Energo has revenues of more than & euro; 10 million and over 50 employees. The company is predominantly active in the Construction and Installation market and specialized in the wholesaling of cables.
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Before the acquisitions of Energo and Kolorits, Hagemeyer operated in Latvia through its subsidiary SIA Elektroskandia, which has annual revenues of & euro; 10 million and about 40 employees.
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We are very happy with the acquisition of Energo," says Rudi de Becker, CEO of Hagemeyer. "This ...

November 7, 2007

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Hagemeyer Expands in Latvia

Hagemeyer NV has acquired SIA Kolorits, an electrical distributor based in Riga, Latvia. The acquisition was made through its Finnish subsidiary Elektroskandia Oy, and doubles the company's revenues in the country.
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Kolorits has annual revenues of more than & euro; 10 million and is active in the Construction and Installation market. The company has over 80 employees and a branch network covering the major Latvian cities. ...

November 2, 2007

Finance

Teaming Up for Hagemeyer

A bidding war has possibly been avoided in the fight for Dutch electrical/industrial distributor Hagemeyer's global assets. Rexel just bid nearly $4.3 billion for the company, but plans to only keep a little over half of Hagemeyer when all is said and done. Sonepar has agreed to buy the rest.
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In an interesting twist, French-based distributor Rexel has made an offer to acquire Hagemeyer, and has agreed to sell certain assets of Hagemeyer to Sonepar if its offer is accepted.
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The move eliminates the possibility of a bidding war between the two electrical distribution giants. It also plays down the risk of buying the entire company.
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Rexel's offer was made for & euro; 4.60 euro a share in cash, valuing Hagemeyer at & euro; 3 ...

October 25, 2007

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Hagemeyer Sales Down in North America

Netherlands-based Hagemeyer NV reported Group revenue was up 3.2% on an organic basis in the third quarter 2007, with sales of 1.6 billion euro (US$2.3 billion ...

October 23, 2007

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Sonepar Offers $3.5B for Hagemeyer

Paris-based Sonepar's unsolicited $3.5 billion (2.5 billion euro) bid Oct. 8 for Hagemeyer NV shook the electrical distribution world this week. Hagemeyer rejected the offer, saying it significantly undervalues the company." Nevertheless, the Netherlands-based company says it will meet with Sonepar to "clarify its intentions.

Based on comments by Hagemeyer CEO Rudi de Becker in August, Hagemeyer is not interested in selling. Still, Sonepar will likely try to persuade the company's board and raise its bid.

Joining Sonepar and Hagemeyer would create a global powerhouse with revenues of roughly 15 billion euro (US$21 billion), based on the two companies'reported sales in 2006. The merger would also mean greater and complementary market coverage for both companies ...

October 10, 2007

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Commentary: Sonepar’s Goal with Hagemeyer Deal

As our lead article notes, the big attraction for Sonepar is Hagemeyer's North American industrial business. Sonepar's U.S. customer base is 64 percent electrical contractors and only 14 percent industrial. Hagemeyer's North American operations are 85 industrial and 15 percent contractor. Sonepar would get a well-developed integrated supply business with more diversified products.
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You have to ask how the model developed for a century or so by Cameron & Barkley and acquired by Hagemeyer at the turn of this century would change& hellip; again -for customers, vendors and employees.
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Will we see more diversification across channels? Is it possible to buy growth in big chunks and combine different pieces to produce a profitable entity? Recent history seems to ...

October 10, 2007

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Hagemeyer Launches Marine Line

Industrial distributor Hagemeyer North America, Charleston, SC, is launching a marine product line focused specifically on the needs of the marine industry.
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Hagemeyer's marine product range includes construction and repair materials and products; electrical systems; hardware; fittings; safety gear; and shop, yard, and marina equipment.
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Hagemeyer's customer base already includes numerous marinas and boat builders.
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Hagemeyer North America is a distributor of Electrical, Safety, and Maintenance, Repair and Operations (MRO) products to industrial users, electrical contractors and government. Hagemeyer North America has annual revenues of $1.8 billion in more than 150 ...

October 9, 2007

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Hagemeyer NA Releases Industrial Catalog

Hagemeyer NA has released its 2007-2008 Industrial Products catalog. The 900-page book features 28,000 items.
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This catalog represents an important part of Hagemeyer's marketing and growth plans and provides our valued customers with a broad array of high-quality products to meet their everyday business needs," says Brad Pulver, vice president, Product Strategy. "The catalog also showcases several of our value-added services that set us apart from our competition, including; Web-based ordering at www.hagemeyerdirect.com, technical services, vending solutions, inventory management solutions, order automation tools and storeroom management capabilities.
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The catalog is organized in the following product categories:&nbsp ;

Hand ...

September 10, 2007

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Hagemeyer Sales Up in First Half

Hagemeyer NV reported organic revenue growth of 5.7% in the first half of 2007 compared with the first half 2006.
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Revenue was 3,117 million euro (US$4,207 million). Profit nearly doubled from the same period a year ago.
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Hagemeyer saw growth in all regions except North America, where organic sales in PPS were down 4.6% in the first half 2007. Sales in Professional Products and Services (Hagemeyer's key business) in North America were US$849 million.
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In the U.S., sales in PPS fell by 5.5%. Two government contracts were not renewed in the first half, accounting for more than 2 percentage points of the drop. U.S. construction and installation business was flat. A decrease in residential business was offset by commercial sales.
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U.S. ...

August 17, 2007

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Hagemeyer Acquires Bryant Electric Supply

Hagemeyer North America has acquired Bryant Electric Supply Company, Inc., Charlotte, NC, to extend its goal of expanding its electrical market penetration in the Southeastern U.S.
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Bryant has annual revenues of $50 million and operates five locations with 100 associates. It is focused in the industrial segment and also serves the Construction and Installation market, mainly non-residential. Bryant will be merged with Hagemeyer's Carolinas business unit. Bryant Electric Supply will continue to operate under the same name.

We're excited to be teaming up with Bryant to further penetrate the growing Charlotte market," said Dave Gabriel, CEO of Hagemeyer North America. "This further strengthens Hagemeyer's commitment to growing our electrical business, building ...

August 14, 2007

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Hagemeyer CEO to Resign in ’08

Hagemeyer, Naarden, the Netherlands, announced that Rudi de Becker will resign as CEO and chairman of the Board of Management of Hagemeyer at the next annual general meeting of shareholders in April 2008.
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Hagemeyer said that De Becker wants to spend more time with his family.
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Commenting on the resignation of de Becker, Adri Baan, chairman of the Supervisory Board said: Rudi de Becker joined Hagemeyer after a period of financial difficulties and he has made a significant contribution to Hagemeyer's recovery. We regret but respect his decision and we trust that a suitable successor will be found."
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Hagemeyer is a distributor of electrical parts and supplies, safety and other MRO products in 25 countries in Europe, North America and ...

June 22, 2007

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Hagemeyer Posts Profit, Organic Growth of 11.5% in ’06

Netherlands-based diversified distributor Hagemeyer NV reported sales of 6.22 billion euros (US$8.17 billion) in 2006. Organic growth was 11.5%. Profit for the year was 140 million euros (US$183.8 million), compared with a net loss of 58 million euros (US$76.1 million) last year.

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A strong global economic environment and high copper cable prices had a positive impact, said CEO Rudi de Becker. This is the first in three years that Hagemeyer has recorded a net gain. Hagemeyer's turnaround has been successfully completed and we are now entering a new phase," he said, "one focused on profitably growth - both on our own and through judicious acquisitions."

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Overall organic growth in the Professional Products and Services division was ...

February 21, 2007

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