Rexel – Rexel continues its active portfolio management with two acquisitions and a disposal
As part of its Power Up 2025 plan, Rexel announces today three transactions, two acquisitions in North America and the divestment of its activities in Norway, further strengthening the Group’s portfolio.
- The acquisition of Buckles Smith Electric Company in the USA was signed and closed on January 5, 2023.
- The acquisition of Lineman’s Testing Laboratories in Canada was signed and closed on January 17, 2023.
- Rexel also announces the signing of the divestment of its operations in Norway to Kesko on January 27, 2023. The completion of the transaction is subject to the approval of Norway’s competition authority.
The three transactions combined will be accretive in year 1 to Rexel’s profitability, earnings, and Return On Capital Employed (ROCE). They are fully in line with the Power Up 2025 strategic roadmap announced in June 2022.
The acquisition of Buckles Smith Electric Company in the USA was signed and closed on January 5, 2023. A recognized industrial automation player and authorized reseller of Rockwell automation solutions, Buckles Smith reinforces Rexel’s expertise, footprint and customer relationship capabilities in the San Francisco Bay area. The combination of both companies will allow them to accelerate development in a high growth and technologyoriented area. Buckles Smith operates 6 branches and generated 2022 sales of c. USD150m.
The acquisition of Lineman’s Testing Laboratories in Canada was signed and closed on January 17, 2023. This company expands Rexel Canada’s footprint in the attractive utility market with a set of services, products and solutions that will be a valuable complement to Rexel’s portfolio. Lineman’s Testing Laboratories operates 2 branches and generated sales of c. CAD 25m in 2022.
Rexel also announces the signing of the divestment of its operations in Norway to Kesko on January 27, 2023. Rexel’s activities in Norway, generating sales of approximately €250m in 2022, were less profitable than Group average and presented less strategic and value creation potential for the future. The completion of the transaction is subject to the approval of Norway’s competition authority.
The three transactions combined will be accretive in year 1 to Rexel’s profitability, earnings, and Return On Capital Employed (ROCE). They are fully in line with the Power Up 2025 strategic roadmap announced in June 2022.
Since January 1, 2021, through 10 transactions including those announced today, Rexel has acquired c. €1.5bn of sales and divested c. €0.5bn of sales, materially enhancing the Group’s growth and profitability profile and reinforcing its capabilities to address the challenges and opportunities of the energy transition and electrification trends.
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Rexel
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More information on Rexel: See the full profile on EMR Executive Services
More information on Guillaume Texier (CEO, Rexel): See the full profile on EMR Executive Services
More information on Rexel PowerUp 2025 Strategic Plan: See the full profile on EMR Executive Services + https://www.rexel.com/en/medias/events/capital-markets-day/ + After undergoing a profound transformation over the past five years that has enhanced the Group’s resilience, Rexel is now well positioned for a new phase of profitable growth, driven both by further optimization of its core model and the development of a leadership position on topics shaping the future of the industry: ESG, energy transition solutions and advanced services. These are encapsulated in a new company-wide plan called Power Up 2025 and captured in robust medium-term financial and environmental targets.
More information on Rexel USA Inc.: https://www.rexelusa.com + Rexel USA had 2021 sales of 3.9 billion euros. It has 446 branches and employs 6,700 people. Our Focus on Smarter Solutions Made Us America’s Premier Distributor.
Millions of US electrical customers trust the expertise, resources and relationships of Rexel USA, Inc. As the US presence of Rexel Group, one of the world’s largest electrical distributors, we apply our know-how, productivity tools and hands-on business-building initiatives to help our customers thrive. Not satisfied with simply delivering products, nearly half of our employees are dedicated to improving how we connect customers with the supplies, solutions and services they need. We’ve developed supply chain models that reduce inventory, raise productivity and cut installation costs. We also help our customers uncover new opportunities. Our energy teams can slash the cost and raise the performance across a facility – from lighting upgrades to complete energy management solutions.
Other Rexel USA Companies are:
- PLATT: https://store.platt.com + In 1953, Isadore and Morrie Platt started the West’s newest electrical supply company. As the first orders rolled in across their orange crate desks, products rolled out to customers in an old Ford truck. Today Platt serves customers throughout the west from a network of over 136 full-service stocking locations and distribution centers in Salt Lake City, Utah, Beaverton, Oregon, and Patterson, California. Platt is a value-added service company that supplies a broad range of high quality products and services to the utility, industrial, electrical, construction, solar, datacomm/security and commercial markets. Platt services are designed to save time and money using Technology, Training, Logistics and Information, ensuring that customers receive consistent quality of service with each and every transaction and/or process.
- Gexpro: https://www.gexpro.com + Gexpro is a distributor of electrical parts and components for construction, industrial and energy solutions markets. We supply a wide range of electrical supplies and productivity solutions for electricians, contractors and industrial plants. Gexpro carries everything from lighting components, motors, circuit breakers, and tools to electrical wiring, conduit, automation solutions and solar panels. In addition to our online store, we have over 80 warehouse storefront locations throughout the U.S. where customers can find the electrical material they need for their projects as well as product expertise from our experienced staff. Gexpro supports customers across the country to create value, lower their total cost of ownership and run their businesses better.
- psc (Parts Super Center): https://www.partssupercenter.com + Licensed provider of genuine GE renewal parts. General Electric engineered and manufactured countless electrical products whose designs are still prominent in today’s modern industrial world. Whether you need a new or backup industrial motor, a simple gasket kit for your mature transformer, or backup stock for unplanned outages, Parts Super Center is your source for genuine GE renewal parts and life-extension solutions. Originally a department of GE Supply, PSC became its own business in 2006 when Rexel Holdings acquired GE Supply and rebranded the organization. We are licensed to have the original drawings, intellectual property, and over 15,000 SKU’s to support the GE installed base. With over 25 years of experience in the power distribution and control markets, we are highly qualified to assist you with the identification and supply of genuine, OEM renewal parts to help your operations remain efficient and profitable. Whether you need renewal parts, life-extension kits, or complete units, we are your solution. PSC is proud to be an ISO 9001 registered business.
- Capitol Light: https://www.capitollight.com + Capitol Light is a national lighting and electrical distributor, incorporated in 1926, with offices coast to coast and possessing global supply and shipping capabilities. Currently Capitol Light services over 275 retail chains, hotels, restaurants, grocery stores, assisted living centers, auto dealerships, financial institutions, casinos, educational facilities, and more! We are your number one source for LEED sustainable lighting design, new construction lighting supply, lamp replacement, lighting & electrical maintenance and complete turnkey remodels.
- Rexel Energy Solutions: https://www.rexelenergy.com + For the past 35 years, the Rexel Energy Solutions team has enabled our clients to make smart choices for a sustainable future through energy efficiency upgrades in facilities across the country. As a specifying distributor supporting Energy Service Companies (ESCOs), Utility-driven programs, and energy retrofits, our team implements over 60,000 energy projects across the country annually.
A specialized, standalone business unit within Rexel, RES is a stocking distributor of energy efficient products and technologies from top tier manufacturers, and are continually vetting new and emerging technologies to assist our clients in providing comprehensive energy retrofits for their end user clients. We continue to research new ways to further decrease the levels of greenhouse gases and expand our offering to help create a more sustainable future for generations to come. - Utility Supply Group: https://www.go-usg.com + Utility Supply Group is a nation-wide supplier to RV Parks and Campgrounds. We ship from warehouses near Kansas City & Seattle to all of North America. USG maintains over $500,000 in inventory for immediate shipment. We also drop ship from many manufacturers.
- Mayer Electric: https://www.mayerelectric.com + Mayer is one of the nation’s largest wholesale distributors of electrical products and equipment, connected solutions, lighting, digital tools, DataCom technologies, power distribution and automation & control systems. We serve contractors, industrials, OEMs, integrators, institutions, government entities, utility providers, commercial businesses and residential customers. Mayer is now a strategic partner with Schneider to deliver their world class automation & control systems to all of our markets. Founded in 1930, Mayer is a privately-held, family and certified women-owned business that employs over 1,200 associates in over 68 locations across 12 states and generated sales of $1.2bn over the last twelve months through end-August 2021.
- Valley Electric Supply, Colorado: https://valleyelectricsupply.net/ + Valley Electric Supply is a successful longstanding family-owned business located in Glenwood Springs, Colorado which primarily services the Roaring Fork Valley and adjacent geographies in Western Colorado.
- Buckles-Smith Electric: https://www.buckles-smith.com/ + Premier Electrical ans Automation Solutions provider for Northern California. With over 80 years in the industry, we’ve seen it all, and we understand the frustrations of malfunctioning parts and machinery failure. Buckles-Smith provides integrated electrical and automation solutions by offering high-end customer service and quality products. Buckles Smith operates 6 branches and generated 2022 sales of c. USD150m.
More information on Brad Paulsen (Chief Executive Officer, Rexel USA): See the full profile on EMR Executive Services
More information on Rexel Canada (Nedco, Westburne, Rexel Atlantic and Rexel Utility): https://rexel.ca + Rexel Canada is a leading distributor of electrical products. We deliver quality products and high quality services. Our strategy of partnering with best in class suppliers ensures our customers have access to the best products available on the market.
Westburne’s story began in 1926 when a gas boom in Turner Valley, Alberta prompted a group of Calgary businessmen to form a small exploration company. This company, Ainsworth Oils Limited, later became Commonwealth Petroleum Ltd., which John Scrymgeour and his partner Bill Atkinson acquired in 1959. Mr. Scrymgeour was Chairman of the Board of Westburne International Industries Ltd. and he later combined Commonwealth and General Petroleums of Canada, two of the oldest contract drilling firms in Canada, to launch the Westburne group of drilling companies.
With the future in mind, Westburne Oil Company Limited changed its name subsequently to United Westburne Industries Limited.
In 1971, United Westburne entered the Canadian electrical supply industry, and continued to expand through various acquisitions over the years. Indeed, 1979 was a pivotal year for United Westburne in the electrical supply industry when it completed the acquisition of Nedco and Zentronics from Northern Telecom.
These acquisitions established United Westburne as a major nationwide distributor of electrical, electronics and telecommunications products to the commercial and industrial market sectors. Commencing in 1986, Westburne added refrigeration, air conditioning and ventilation supplies to its product line through a series of acquisitions of Canadian companies involved in these areas in Canada and the United States.
In 1995, United Westburne changed its name to Westburne Inc. and continued to expand in Canada and the United States by completing various acquisitions that added 81 branches to its existing network. In forty years, Westburne has become the largest North American wholesaler and integrated distributor of construction, industrial and commercial supplies.
On September 25, 2000 Rexel SA, a world leader in the distribution of electrical supplies with a presence on 4 continents and in more than 30 countries entered the Canadian market by completing the acquisition of all the shares of Westburne Inc. Thus Rexel Canada was born.
Recently, Rexel Canada acquired Wesco Utility and renamed it Rexel Utility. Rexel Utility is the distributor of choice for investor-owned utilities (IOUs), public power municipalities, rural electrification associations (REA’s) and contractors seeking solutions for transmission, distribution and substation projects.
- 4 Banners
- 198 Branches
- 2,220 Employees
- 1.5+ Billion dollars in Sales
- Nedco: https://www.nedco.ca/cnd/ + Nedco is a banner of Rexel, a world leader in the distribution of products, services and electrical solutions. Nedco is one of the most comprehensive Electrical and Datacom distributors across Canada with 69 locations nationwide. Nedco offers a wide range of quality products in Lighting, Datacom, Wire & Cable, Power Management and Electrical supplies.
- Adrian Trotman (Vice President, Nedco): See the full profile on EMR Executive Services
- Westburne: https://www.westburne.ca/cwr/ + Westburne, Canada’s largest electrical solutions, and supplies distributor, plays a major role in the world of energy. We work with leading product manufacturers to provide you with the energy solutions for industrial and commercial markets. If you are looking for an electrical distributor, look no further than the #1 electrical supplier in Canada. Westburne helps power Canada through our 102 branches throughout Canada. With immediate convenience services such as 24/7 web access, local market delivery, and easy pick-up.
- Dave Syer (Vice President, Westburn): See the full profile on EMR Executive Services
- Rexel Atlantic: https://atlantic.rexel.ca/cra/ + In 2015 Rexel combined its two Atlantic Canadian banners, Liteco and Nedco, to form the new division of Rexel Atlantic. With 13 branches across Atlantic Canada, Rexel’s over 150 trained professionals are pleased to offer one stop shopping to our customers for a wide range of quality products for distribution, lighting, energy savings, communications/data, fire alarm, wire and cable and other electrical products.
- Nathan Salmon (General Manager, Rexel Atlantic): See the full profile on EMR Executive Services
- Rexel Utility: https://rexelutility.ca/ + premier distributor of medium and high-voltage products in the Canadian utility market. Rexel Utility is the distributor of choice for investor-owned utilities (IOUs), public power municipalities, rural electrification associations (REA’s) and contractors seeking solutions for transmission, distribution and substation projects. Our capabilities include the supply of medium and high voltage material packages while continuing to support the transmission and distribution line material needs nationally. Our services include the Trydor Manufacturing division, a design and manufacturing center of various standard and custom utility assemblies and components. The Rexel Utility service center is a NAIL for PET (North American Independent Laboratories for Protective Equipment Testing) and BC Hydro approved facility for the testing and certification of safety gloves and equipment plus certified repair center of electrical, hydraulic and mechanical construction tools. Rexel Utility is a proud member of the Canadian Electricity Association (CEA) and operates nationally with our regional sales teams located across Canada in Surrey, Edmonton, Calgary, Ontario and Quebec. Our distribution centers are located in Surrey, Edmonton and Newmarket.
- Chris Hergott (General Manager, Rexel Utility): See the full profile on EMR Executive Services
More information on Lineman’s Testing Laboratories of Canada: https://ltl.ca/ + Lineman’s Testing Laboratories (“LTL”) has been trusted since 1958 to deliver cost-effective and comprehensive solutions for power system reliability and sustainability. With the resources of a diversified and industry-experienced team, a commitment to providing service to our clients that is of a high industry standard, and our ability to pull from an extensive inventory of electrical apparatus (including Transformers and Switchgear), LTL is ideally suited to assist companies in effectively managing their electrical systems, ensuring the continued success of their business.
As a privately owned Canadian company serving the utility, industrial and commercial sectors across Canada, LTL successfully maintains a loyal customer base and is recognized and respected for its integrity, and long-term business relationships. LTL provides the services of three divisions: Power Technical Services (Electrical Engineering & Substation Services); LTL Utility Supply; and, NAIL-accredited High Voltage Testing, Calibration and Factory Authorized Tool and Equipment Repair Services.
Lineman’s Testing Laboratories operates 2 branches and generated sales of c. CAD 25m in 2022.
More information on Robert Burgess (President, Lineman’s Testing Laboratories of Canada): https://ltl.ca/about-us/history.html + https://www.linkedin.com/in/burgessrob/
More information on Roger Little (Group Executive Committee member and Chief Executive Officer of Rexel Canada): See the full profile on EMR Executive Services + https://www.linkedin.com/in/roger-little-b8856b18/
More information on Rexel Norway (Elektroskandia): https://www.elektroskandia.no/ + Committed partnership. Good marketplaces. We supply products and services to the e-works, industry and installation markets. Elektroskandia carries products from the best manufacturers in addition to the more affordable alternatives. Today’s markets require a wide range, competitive prices, 24-hour availability and efficient logistics. Customers seek binding partnerships and we can offer that.
More information on Jan Wilhelmsen (CEO, Rexel Norway (Elektroskandia)): https://www.elektroskandia.no/kontakt/ledelsen/ + https://www.linkedin.com/in/jan-wilhelmsen-12472198/
More information on Kesko: https://www.kesko.fi/en/ + Kesko is a Finnish listed trading sector company. Kesko operates in the grocery trade, the building and technical trade and the car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners.
Kesko has approximately 1,800 stores engaged in chain operations in Finland, Sweden, Norway, Estonia, Latvia, Lithuania and Poland.
K – For shopping to be fun.
More information on Mikko Helander (CEO, Kesko): https://www.kesko.fi/en/investor/corporate-governance/company-management/ + https://www.linkedin.com/in/mikko-helander-8a6319146/