Global Fastener News

Rexel of France Acquires GE Supply, Including the Former Questron Technologies

John Wolz

Worldwide electrical supplies distributor Rexel Group and General Electric’s Consumer & Industrial unit announced Rexel will acquire GE Supply, GE’s electrical distribution business, for US$725 million.

The deal includes GE Supply Logistics, which GE established after acquiring fastener distributor Questron Technologies Inc. in 2002 for $88.7 million.

Rexel’s U.S. subsidiary, Dallas-based Rexel Inc., posted $2.5 billion in sales in 2005. GE Supply offers Rexel US$2.2 billion in pro forma 2005 annual revenues for the transferred business.

GE Supply distributes electrical products produced by GE and more than 200 other manufacturers. The Shelton, CT-based business employs approximately 2,500 people in more than 150 locations around the world. GE Supply’s core electrical distribution activities operate mainly in the U.S.

Rexel announced it will operate in the U.S. through a dual-banner strategy and expand product lines.

The transaction is expected to close by early August 2006, subject to consent of Rexel’s senior lenders.

Fastener division GE Supply Logistics is headquartered at an 82,000 sq ft facility in Irving, TX, including an aerospace distribution center and an industrial and commercial branch. A division of Shelton, CT-based GE Supply, GE Supply Logistics supplies 126,000 line items through 30 warehouses in the U.S. and Mexico. The company has about 400 employees and supplies parts for the aerospace industry as well as commercial and industrial OEM users.

GE Supply will operate as a stand-alone organization and will report to the newly created Rexel U.S. Holding group currently headed by CEO Dick Waterman and GE Supply CEO Jeff Schaper.

The French parent company Rexel has 1,686 branches in 24 countries. In 2005, Rexel employed 21,000 people, and posted sales of Euro 7.4 billion (US$9.4b). Rexel Inc. reported 4,945 employees at more than 300 branches in 34 states. In the past 18 months, Rexel has acquired electrical distribution businesses in Europe and the U.S. Rexel recently completed acquisitions of Electro-Material of Switzerland, ElettroBergamo of Italy and Capitol Light & Supply of the U.S. Rexel was acquired in 2005 by an investor group including Clayton, Dubilier & Rice, Eurazeo and Merrill Lynch Global Private Equity. Web: rexel.com

GE Supply reported 2005 revenue of U.S. $2.3 billion. GE Supply has 2,500 employees worldwide with 150 branches in the U.S., Puerto Rico, Ireland, Hungary and Asia. Web: gesupply.com
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