Beyond Platt, Rexel details ambitions through 2015

Rexel SA of Paris held its “Investor Day” recently. The event included the unveiling of a new company identity.

Going along with that graphic are the following “ambitions” the company set for itself, through 2015:

Organic growth, from operations already within the company fold, is to be 2% higher, on average, than that of the countries within which the company operates. So if these countries grow GDP by 4% annually in 2012-2015, Rexel SA has created the expectation that it will grow sales by at least 6%.

Note that the organic growth commitment specifically excluded the impact of movements in the price of copper.

Acquisitions will add 3% to 5% to the sales total, annually, on average, between now and the end of 2015. The company said it has allocated more than $600 billion to its acquisition strategy, as it “will continue to be a leading market consolidator.”

Strategy elements in acquisitions, Rexel said, were:

  • Pursuing market share gains and synergies in key mature markets
  • Increasing its footprint in fast-growing countries
  • Extending its offer of value-added services and presence in key vertical markets

A report on Rexel SA’s recent Annual General Meeting included the graphic below:

In a transcript of the conference call between Rexel SA executives and financial analysts held May 3 (after Q1/12 results were announced) between Rexel SA Rudy Provoost, chairman and CEO, said, “…acquisitions are a key component of Rexel’s profitable growth strategy. This year, we actually earmarked [up to $625 million] for investment in acquisitions.”

[Note: All dollar figures are translated from euros at the current exchange rate, which kitco.com gave as $1.2428 per euro as of the close of business Fri. 6/1]

Rexel SA announced a total of eight acquisitions from Jan. 1 to May 3. This does not include the Platt deal.

“Of the eight acquisitions, two specifically relate to our strategy to expand in fast-growing markets and represent about [$125 million] in sales on an annualized basis.  The six other acquisitions, representing [$375 million] in annualized sales, illustrate our commitment to strength our footprint in mature markets.”

With the Platt acquisition, Rexel SA apparently has added nearly $900 million in annualized sales to its operations via acquisition in the year’s first five months. Rexel’s sales in 2011 were approximately $15.8 billion. An item in The Oregonian on the Platt acquisition gave the purchase price as $381.7 million and Platt’s 2011 sales as $394.4 million.

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