TORONTO, CANADA – January 30, 2023 — 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. 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 technology-oriented 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.
Lineman’s Testing Laboratories (“LTL”) has been trusted since 1958 to deliver cost-effective and comprehensive solutions for power system reliability and sustainability. They are 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. www.ltl.ca
About FirePower Capital
FirePower Capital is the private capital and M&A advisory firm built for Canada’s entrepreneurs. Our team of 60+ professionals help mid-market business owners complete mission-critical transactions, by advising them or investing in their companies directly. www.firepowercapital.com