French electrical supplies distributor Rexel SA (EPA:RXL) on Wednesday said it had agreed to take over US sector player Platt Electric Supply Inc for an enterprise value of some EUR300m (USD382m), in line with strategy to boost market share in its key markets.
The deal will enhance Rexel presence in the US and increase to over 10% its share of the key market in western US which is expected to register a faster growth that the overall US sector, the buyer said.
The addition is expected to contribute to the buyer’s earnings by the end of next year.
Rexel’s chairman and CEO Rudy PROVOOS sees Platt Electric Supply as a strong strategic and geographic fit for the group’s US operations, he said, adding that the combination would generate substantial value for Rexel and its shareholders.
Platt Electric Supply’s president Jeff Baker will also assume the position of CEO for the company as well as that of vice president of Rexel Inc, a local unit of Rexel SA.
Completion is expected in early July, subject to customary conditions.
Oregon-based Platt Electric Supply operates 111 branches in seven US states and two logistics centres. It had sales of around EUR310m last year when it employed about 1,000. It supplies electrical contractors, industrial facilities and commercial businesses with electrical and energy efficiency products and services.
Rexel has US units Rexel Inc and Gexpro combining nearly 300 branches across the country. The US operations generated more than EUR2.5bn in sales last year.