International multichannel distributor Rexel (RXL:PA) has agreed to acquire Mayer Electric, a family-owned, Birmingham, Alabama-based distributor of electrical products and services, for $456 million.
Mayer operates 68 branches in 12 states, with a strong presence in Alabama, Florida, Georgia and Pennsylvania. The company says it has 1,200 employees and has generated revenue of $1.2 billion over the last 12 months through August. Mayer ranks No. 12 on MDM’s Top Distributors list for electrical, data & security distributors with $1.1 billion in revenue in 2020.
“We are honored and excited to join the Rexel Group, a forward-thinking, innovative leader in the electrical distribution industry,” said Wes Smith, president and CEO of Mayer. “Maintaining the Mayer brand and culture, alongside and as a part of the Rexel brand and culture, will create strategic value for our customers, suppliers, communities, and stakeholders. Our combined geographic footprint, offering best-in-class products, services, solutions and digital capabilities, will help our customers and suppliers grow and be successful.”
Rexel ranks No. 5 on MDM’s Top Distributors list for electrical with $5.3 billion in revenue last year. The company said the transaction will be accretive to Rexel’s earnings per share in the first year and “value-creating” in the second, attributable to targeted synergies of acquired sales in year two.
“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,” said Guillaume Texier, CEO of Rexel. “The two companies’ strengths in the regions where Mayer operates are very complementary and should allow for a smooth integration. We are impressed by the quality and reputation of Mayer’s team and are looking forward to starting to work with them, under the leadership of Jeff Baker, CEO of Rexel USA. This transaction is fully in line with both the strategy and the financial objectives announced at our February Capital Markets Day.”
Look for much more on this deal at mdm.com.
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