Rexel announced today that it has reached an agreement to acquire Beaverton, Ore.-based Platt Electric Supply.
“This is a fantastic opportunity to bring in one of the premier electrical distributors out there. Platt is extremely well respected for its strong brand, excellent business model and great performance,” said Brad Greene, vice president of human resources and communications at Rexel Holdings USA.
Rexel says the acquisition of Platt will strengthen its market share in the Western region of the United States. The company’s market share in the Western region, which is expected to grow at a faster rate than the overall U.S. market, will exceed 10%. “We don’t have a strong footprint in the northwest and Platt has a great presence,” Green said. “This does wonders for us in that region of the country.”
According to a Rexel news release, the acquisition marks a c. €300 million (enterprise value) investment for Rexel. It will be accretive by the end of 2013.
The acquisition is expected to close in early July with Platt’s operations being consolidated from July 2012. So what does this mean for Platt? “Platt will continue to be branded as Platt,” Greene said. “We’re going to have them run and keep doing what they’re doing and that has been clearly communicated to both their employees and ours.”
Greene also said, based on Platt’s business model, the company will report into Rexel Inc.—one of the two (with Gexpro being the other) primary branches of Rexel Holdings USA in the electrical distribution industry. Rexel Holdings USA is under the leadership of Executive Vice President and CEO Chris Hartmann and Rexel Inc. is under the leadership of President and General Manager Mark Daniel. Platt Electric Supply President Jeff Baker will become president and CEO at Platt and vice president of Rexel Inc.
“We have tremendous respect for Platt and we’re excited to bring them onboard to share best practices, learn from each other and leverage some of their innovation. We think their people and company culture are a great fit.”
Established in 1953, Platt Electric Supply has 111 locations throughout California, Nevada, Idaho, Oregon, Montana, Utah and Washington.Tagged with tED