Electrical supplies distributor Rexel has agreed to acquire specialty wire, cable and connectivity distributor GCG in a $1.4 billion transaction that would significantly expand Rexel’s U.S. presence and add more than $1.1 billion in annual revenue.

Paris-based Rexel announced Sept. 25 that it entered into an agreement to acquire Chicago-based GCG from Audax Private Equity. The deal is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions.

GCG operates 16 locations with approximately 950 employees and is expected to generate more than $1.1 billion in 2026 revenue. The company provides specialty wire and cable, connectivity, power and engineered solutions for critical infrastructure applications.

More than 75% of GCG’s revenue includes value-added products or services, according to Rexel. Its capabilities include engineering, custom assembly, product modification, kitting, testing and rapid fulfillment, while more than 60% of revenue is tied to higher-growth markets including data centers, power and utility infrastructure, grid modernization, communications and defense.

GCG has posted double-digit annual revenue growth since 2019 and is expected to produce an approximately 11% EBITA margin in 2026. Rexel said the combination should generate cost savings through logistics optimization, insourcing, scale and other efficiencies while creating opportunities to offer GCG’s specialty capabilities across Rexel’s larger customer base.

Rexel plans to finance the acquisition through existing cash, approximately €800 million of debt and an equity offering of up to €500 million.

The transaction extends an already active acquisition year for Rexel in North America.

In May, Rexel USA agreed to acquire Revere Electrical Supply — a Mokena, IL-based industrial automation and electrical distributor with 10 Illinois and Wisconsin branches and approximately $330 million in 2025 revenue.

Rexel followed in July by acquiring Cedar Rapids, IA-based DEE Electronics, which generates approximately $50 million in annual revenue and provides electronic assemblies, wire harnesses, control panels, component sourcing, kitting and other supply chain services for OEM customers. The deal expanded Rexel further into data center infrastructure, industrial automation and other specialized applications.

Rexel’s Growth Accelerates

The acquisitions come alongside strengthening organic performance.

Rexel posted approximately $6 billion in 2Q26 sales, up 6.7% year-over-year on a constant, same-day basis. North American same-day sales increased 7.8%, including the same growth rate in the U.S. Data center sales — about 9% of Rexel’s U.S. business — more than doubled, while industrial automation sales increased 15%.

The company’s U.S. backlog topped $2 billion during the quarter, up approximately 25% from the end of March. Rexel subsequently raised its 2026 same-day sales growth outlook to approximately 5%.

Globally, Rexel had 2025 total revenue of just over $23 billion, while its $10.4 billion in North America placed it at No. 4 on MDM’s 2026 Top Distributors List for Electrical/Data/Security.

More Rexel and GCG News

• • Aug. 19 — Rexel USA Taps Mike Hanna as CRO
  • March 2025 — Former EIS Chief Exec Takes Same Post at GCG

MDM Analysis

GCG represents more than another bolt-on for Rexel. The deal accelerates its shift toward specialty distribution, engineered services and infrastructure markets where technical capabilities can produce stronger growth and margins than traditional product distribution.

It also reinforces the competitive pressure for differentiated electrical assets. Graybar has already completed three acquisitions in 2026, while other sector players are pursuing data center, automation and infrastructure capabilities. As those markets attract investment, consolidation increasingly appears aimed not just at geographic scale, but at acquiring expertise and higher-value services that are harder to build organically.