The 2020 Mid-Year Economic Update_long

Rexel Acquires Capitol Light and Supply Co.

Rexel Inc., Dallas, TX, has acquired Capitol Light and Supply Company, Hartford, CN, a distributor in the New England electrical distribution market and the national retail lighting market. The acquisition illustrates Rexel’s ongoing commitment to a dynamic growth strategy in the U.S. market and provides a significant footprint in the New England region.


Capitol Light and Supply Company had sales of $234 million in 2005. With 415 employees at 22 branch locations in five states (Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island), CLS, the electrical wholesaling business, enjoys a 15% market share in the region. Capitol Light, the company’s national retail lighting business, operates in 36 states and Canada, with distribution centers located in New Haven, Connecticut, and Fort Worth, Texas.


‘Following the acquisition announced in February of Elektro Material AG, the leading Swiss wholesale distributor of electrical supplies, the new transaction with Capitol Light and Supply Company in the U.S. underscores Rexel’s determination to pursue its selective external growth strategy, aimed at significantly strengthening its local position. Rexel’s sales volume will increase by 10% over and above our rapidly growing base, on the highly-fragmented U.S. electrical distribution market. The company is poised for growth opportunities in this country,’ stated Jean-Charles Pauze, CEO of Rexel Group.


Capitol Light and Supply Company’s customer base comprises electrical contractors (about 70% of sales) and major national retail lighting accounts (about 30% of sales). Rexel says it intends to further develop the national accounts model, leverage the company’s expertise, and expand the concept to other branches throughout the country.


The acquisition is expected to close before the end of June 2006, pending governmental approvals. Upon closing, the business of Capitol Light and Supply will operate under the trade names Rexel CLS and Rexel Capitol Light.


Rexel Inc., a subsidiary of the Rexel Group, is a distributor of electrical and datacom supplies in the U.S. With more than 4,500 employees, Rexel Inc. operates close to 300 branches in 29 states. Rexel’s U.S. sales are projected to exceed $2.5 billion on an annualized basis, excluding the acquisition of Capitol Light and Supply.


Rexel operates in 24 countries through a network of 1,686 branches. The Group employs 21,000 people, and posted sales of 7.4 billion euros ($9.5 billion) in 2005.

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