The global leader in the distribution of electrical supplies, Rexel, has announced today an agreement has been reached to acquire Platt Electric Supply, a premier independent distributor of electrical products & services in the Western United States.
The acquisition is believed to be worth an approximate investment value of €300 million ($383 million) for Rexel and will be accretive by the end of 2013.
Platt Electric Supply significantly reinforces Rexel's position in the US, one of the world's largest markets for electrical supplies, and strengthens its market share in the Western part of the country. Rexel's market share in this region, which is expected to grow at a faster rate than the overall U.S. market, will exceed 10 percent following the acquisition.
This acquisition supports one of Rexel's top external growth priorities, strengthening its market share in key mature markets where the Group is already present. Platt's business model focused on organic growth, its strong financial performance, outstanding customer service, experienced and well-trained employees, strong brand recognition and innovative use of technology constitute solid assets on which to build in the future.
Jeff Baker, President of Platt Electric Supply, will become President and CEO of Platt Electric Supply and will become Vice President of Rexel Inc. He will take on an increased authorative leadership role on several key initiatives for the broader Rexel business in the US.
Before the transaction can be closed there are still customary conditions to satisfy but once this is complete it is expected the deal will close in early July, and Platt Electric Supply's operations should be consolidated from July, 2012.
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