Back on October 6, Rexel USA and Mayer announced an agreement in principle for Rexel to acquire Mayer’s 68 branches in 12 states.
Based on an enterprise value of USD 456 million, the transaction is projected to be accreditive to Rexel’s Earnings Per Share (EPS) 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.
This acquisition will provide several strategic benefits to both parties:
- It will reinforce Rexel’s presence in the Southeast and Mid-Atlantic regions, with specific focus on high growth areas. Mayer’s physical footprint is very complementary to Rexel’s, and Mayer‘s well-established reputation in the marketplace will benefit both companies.
- It will extend and reinforce Rexel’s relations with key suppliers of electrical products and services
Mayer will be able to leverage a series of tools developed by Rexel to accelerate its digital presence and sales, develop new services and enhance operational efficiency.
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. 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.”
“This move is an important step in expanding Rexel’s footprint in the US, the world’s leading market for electrical supplies, and will strengthen our market share in the Eastern part of the country,” said Jeff Baker, CEO of Rexel USA.
Wes Smith, President and CEO of Mayer, commented “We are honored and excited to join the Rexel Group, a forward-thinking, innovative leader in the electrical distribution industry. 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.”
“We could not be prouder of the achievements of the Mayer team, which for nine decades has built a stellar reputation as a leading provider of electrical goods in the Southeastern and Mid-Atlantic regions of the United States,” said Nancy Collat Goedecke, Mayer Chairman and CEO. “We are confident that we are placing the company in good hands to continue the values that have set Mayer apart and take the Mayer brand to even higher levels in the years to come.”
Mayer is a leading provider of connected solutions, lighting, digital tools, DataCom technologies, power distribution and automation & control systems. The company serves contractors, industrials, OEMs, integrators, institutions, government entities, utility providers, commercial businesses, and residential customers. Mayer also is a strategic partner with Schneider Electric to deliver their world class automation & control systems to all its markets.
ABOUT REXEL USA
Rexel USA is a part of Rexel Group, worldwide expert in the multichannel professional distribution of products and services for the energy world, addresses three main markets – residential, commercial, and industrial. The Group supports its residential, commercial, and industrial customers by providing a tailored and scalable range of products and services in energy management for construction, renovation, production, and maintenance.
Rexel operates through a network of more than 1,900 branches in 25 countries, with more than 24,000 employees. The Group’s sales were €12.6 billion in 2020.