Rexel, a global leader in the distribution of electrical supplies, announced Monday the acquisition of India’s AD Electronics. Rexel entered the Indian market through the acquisition of Yantra Automation in January. The investment further strengthens Rexel’s footprint in the country with this new acquisition.
Based in Mumbai, one of India’s major industrial regions, AD Electronics is specialized in the distribution of automation products. It operates through 2 branches and 1 warehouse. The company employs 22 people and posted sales of 5 million euros in 2010.
The acquisition will take place in 2 stages, with the immediate acquisition of 75% now, and further acquisition of the remaining 25% in 2015.
After the acquisition of Nortel Suprimentos Industriais in Brazil, three acquisitions in China (Beijing Lucky Well Zhineng, Wuhan Rockcenter Automation and Beijing Zhongheng) and the acquisition in India of Yantra Automation, this is Rexel’s sixth acquisition in fast-growing markets in the last 6 months.
The compound annual sales generated by these six companies in 2010 amounted to around 190 million euros. At the same time, Rexel announced Monday that it intends to offer €500 million of senior unsecured notes maturing in 2018 aimed at enabling the firm to further enhance its financial flexibility and extend its debt maturity profile.
Through its distribution networks for professional customers in the industrial, residential, and commercial sectors, Rexel provides innovative electrical solutions and equipment to improve comfort, performance, and energy efficiency.
The Group is one of world’s leading companies in the electrical chain, working with individuals from electricians to key industrial accounts and equipment manufacturers. For all its customers, Rexel offers a unique range of electrical supplies in terms of its breadth and availability.
Rexel operates in 36 countries with 2,200 branches, a distribution network of more than 40 banners and 28,000 employees. Throughout the world, it is accelerating electrical advances in close collaboration with its customers and partners.
With the acquisition of the major European assets of the Hagemeyer group in 2008 and of Gexpro in 2006, Rexel more than doubled in size in just four years. Thanks to its strategy for growth, based on conquering new sales opportunities, its operational excellence, and sound financial base, Rexel is a world leader and benchmark in the electrical market. In 2010, Rexel recorded sales of 12 billion euros.
