Rexel enters into an agreement to buy Mayer to expand its footprint in the USA.

Rexel is pleased to announce that it has entered an agreement to buy Mayer, a major distributor of electrical products and services operating in the Eastern part of the United States.

This acquisition is fully in line with the strategy and financial objectives Rexel presented at its Strategic Update last February, when we said that we would resume bolt-on acquisitions, notably to strengthen our leading position in key markets.

This move is an important step in expanding Rexel’s footprint in the US, the world’s leading market for electrical supplies

Based on an Enterprise Value of USD456m, the transaction is projected to be accretive to Rexel’s Earnings Per Share in year 1 and value-creating in year 2, fully in line with the Group’s commitment, notably thanks to targeted synergies of c.1.5% of acquired sales as of year 2. The transaction will leave Rexel’s indebtedness ratio significantly below 2.0x EBITDA on a proforma basis.

Headquartered in Birmingham, Alabama, Mayer operates 68 branches in 12 states, with a strong presence in Alabama, Florida, Georgia and Pennsylvania. It employs 1,200 employees and generated sales of $1.2bn over the last 12 months through end-August 2021. Its customers are primarily in the commercial and industrial end-markets.

Guillaume Texier, CEO of Rexel, stated:

“The acquisition of Mayer will allow Rexel to expand its footprint in North America, the biggest market in the world for electric supplies and a key pillar of our strategy. The two companies’ strengths in the regions where Mayer operates are very complementary and should allow for a smooth integration.”