Rexel announced it has reached an agreement to acquire Munro Distributing Company, an electrical products and services distributor specializing in energy efficiency solutions in the Eastern United States and California.
According to a Rexel press release, “Munro Distributing Company significantly reinforces Rexel’s position in the U.S. as a premier provider of energy efficiency solutions. The combination of Rexel’s robust energy platform within its Gexpro and Rexel Inc. banners and Munro Distributing Company will create an energy efficiency solutions offering of unrivaled scope in the U.S. market.”
This latest acquisition supports Rexel’s Energy in Motion company plan to consolidate its presence in mature markets and accelerate profitable growth in high potential business categories related to energy efficiency.
Munro has a history of innovative energy efficiency solutions and strong partnerships with energy services companies (ESCOs) and utilities.
“Munro Distributing Company got into the energy efficiency space before it was mainstream. They were talking green before everyone else,” said Brad Greene, vice president of human resources and communications at Rexel Holdings USA. “Their energy solutions piece was particularly attractive to Rexel and we’re thrilled to add them to our team.”
The acquisition represents roughly $150 million (enterprise value) for Rexel and it will be accretive by the end of 2013. The transaction is subject to customary conditions and should close in early December. Munro Distributing Company’s operations should be consolidated from December 1.
Rudy Provoost, chairman of the management board and CEO, said, “With the acquisition of Munro Distributing Company, Rexel is taking a decisive new step in its commitment to become a global leader in providing innovative solutions to manage energy more efficiently. The combination of Munro’s innovative and fast-growing business with Rexel’s existing operations in the U.S. creates an unparalleled offer in energy-efficiency in the U.S. market. It allows us to address a broader range of clients and provides a strong boost to our Energy in Motion strategic plan.”
Rexel will invest circa $150 million for this acquisition, which should be accretive by the end of 2013.
After completion of the transaction, Munro Distributing Company will become Rexel Energy Solutions and come under the direction of Christopher Hartmann, EVP and CEO of Rexel Holdings USA. Scott Munro will remain as President & General Manager of Munro Distributing Company with Brian Munro as Vice President Energy Solutions and Kevin Munro as Vice President Finance.
“The company is doing well and growing, so there’s no need to change any of that,” Greene said. “We’ve been able to meet with the team and interact with them and we’re excited that Scott, Brian and Kevin will be staying on to run it. It’s been a family business for a longtime and they have the expertise and a proven track record.”
The purchase of Munro Distributing Company closely follows the announcement of Rexel’s acquisition of Platt Electric Supply in July and signals the company’s continued focus on growth in the U.S. electrical supplies and services market.
The transaction, subject to customary conditions, should close in early December and Munro Distributing Company’s operations should be consolidated from the 1st December, 2012.
With a 60 year history and three generations of family ownership, Munro Distributing Company is a progressive, independent distributor of electrical products and services in the Eastern United States of America and California, specializing in energy efficiency and conservation solutions. Founded in 1951 and based in Massachusetts, the company is a premier supplier to the fast-growing ESCO segment and also provides solar, life safety systems and mechanical energy diagnosis. The company is on target to post annual sales of circa $150 million this year compared with $114 million in 2011. Operating 12 branches located in the 5 states of Massachusetts, Rhode Island, New York, New Jersey and California, the company employs around 185 people. Greene said Rexel will keep Munro’s employees on-board.
Rexel Holdings USA, is the U.S. subsidiary of the Rexel Group, a global leader in the distribution of electrical products and services, offering a broad range of innovative energy management solutions. Operating from close to 400 branches located across the country, Rexel Holdings USA provides products and services to the commercial, industrial and residential end-markets. In 2011, Rexel’s American operations contributed over €2.5bn to the group’s consolidated sales. Through its portfolio of businesses, including Gexpro, Gexpro Services, Rexel Inc., Rexel International Project Group, Capitol Light, Parts Super Center and Platt Electric Supply, the company offers an integrated platform of products, solutions and services in datacom, energy efficiency and renewable energy, from lighting upgrades to alternative energy technologies, helping customers maximize their business operations.
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