The electrical supplies and services distributor Rexel announced that it plans to acquire the specialty wire and cable distributor GCG in a deal that could bolster revenue for the new parent company.
Rexel, which is headquartered in France, valued GCG at $1.4 billion in the transaction, according to a Rexel press release. The company has made previous acquisitions in recent years, spanning Europe and North America. Now, GCG stands to bring as much as $1.1 billion in additional annual revenue to Rexel.
GCG’s own acquisitions over its past seven years of expansion have included United Wire & Cable, CableMaster, RWL, Paige and Allied Wire & Cable.
Why Rexel is acquiring GCG
“This is an exciting milestone for GCG and a testament to the strength of our business, our culture, and, most importantly, our people,” said Glenn Pennycook, chief executive officer at GCG.
Rexel would acquire GCG from current owner Audax Private Equity in a deal that Rexel expects to close by the end of 2026.
“With the support of Audax, we’ve built a differentiated business with strong technical capabilities, deep customer and supplier relationships, and a track record of growth,” Pennycook stated. “We believe Rexel’s strategic focus and commitment to customers and suppliers make them the right partner to continue that momentum, while creating new opportunities for our associates, customers, and supplier partners.”
GCG, which is based in Chicago, currently operates 16 locations and employs about 950 team members, according to its official figures.
How Rexel views GCG
Guillaume Texier, the CEO at Rexel, described the GCG acquisition as “an exciting and major step forward in Rexel’s strategy.”
His company plans to finance the deal with a combination of cash and debt. That alone would total about $909 million (800 million euros). In addition, Rexel announced that it intends to raise as much as $568 million (500 million euros) in equity.
“It significantly expands our addressable market, strengthening our position in key, fast-growing segments,” Texier said. “It moves Rexel into higher-value parts of the infrastructure value chain and creates a more complete offering across electrical power and digital connectivity.”
He praised GCG for its “high-quality, talented teams with a strong reputation with customers, suppliers and partners.” Those assets, according to Texier, “will be key assets as we build a leading specialty infrastructure platform together.”
Moreover, he called GCG “an exceptional platform combining strong growth, an attractive margin profile and differentiated capabilities.” He said that’s fully in line with Rexel’s Axelerate 28 strategy.
Rexel listed Guggenheim Securities and Rothschild & Co as its financial advisors on the deal. Sidley Austin LLP is named as its legal advisor. Meanwhile, Solomon Partners and J.P. Morgan are listed as financial advisors to GCG, whose legal counsel is cited as Kirkland & Ellis and Fredrikson & Byron.
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