Paris, France-based Rexel agreed to sell its Latin America operations to Paris-based Sonepar for an enterprise value of $51 million. This divestment is part of Rexel's previously-announced disposal plan to reallocate its resources to its most profitable activities.
Rexel currently operates in three countries in Latin America: Brazil, Chile and Peru. Combined, these three countries' contribution to Rexel's 2014 sales amounted to €256.8 million euros (US$287 million), about 2 percent of group sales. With the acquisition, Sonepar enters into two additional countries – Chile and Peru – and brings its total number of countries with operations to 43.
The divestment of all of its operations in Latin America will allow Rexel to refocus its managerial efforts on its three main geographies (Europe, North America and Asia-Pacific) and continue its targeted acquisition policy in these regions.
Rexel reported sales for the first quarter of 2015 of €3.3 billion, up 7.1 percent over the same period a year ago. On a constant and same-day basis, sales were down 0.4 percent. Profit fell 52 percent to €20.7 million (US$23.1 million).
In Europe (54 percent of group sales), sales increased 1.5 percent year-over-year. On a constant and same-day basis, sales were flat.
North American sales (34 percent of group) increased 16.1 percent from the prior-year period. On a constant and same day basis, sales declined slightly, due to lower cable prices. U.S. sales grew 0.2 percent, while Canadian sales declined 1.5 percent.
Asia-Pacific sales (10 percent of group) increased 12.7 percent on a reported basis, but fell 2.5 percent on a constant and same-day basis.
Sales in Latin America were up 2.7 percent (down 1.1 percent on a constant and same-day basis).