Rexel Completes Sale of Latin America Operations

Rexel has announced that it has completed the sale of its operations in Latin America, after receiving the approval of the relevant anti-trust authorities.

This sale is part of the disposal program launched by Rexel early 2015 and which is expected to be completed by the end of 2016 at the latest.

The sale of the Latin American operations represents approximately 40% of the entire disposal program.

These are the details of the original agreement, posted by Rexel in April:

Rexel announces today the sale of its operations in Latin America to Sonepar for an enterprise value of 51 million USD (c. 47 million euros at the latest exchange rate).

This divestment is part of Rexel’s previously-announced disposal plan in order to reallocate its resources to its most profitable activities. The main terms and financial impacts of the disposal plan were announced at the presentation of the 2014 full-year results on February 12, 2015.

Rexel currently operates in 3 countries in Latin America: Brazil, Chile and Peru.

Combined, these three countries’ contribution to Rexel’s 2014 consolidated sales amounted to 256.8 million euros (down 3.8% year-on-year on a constant and actual-day basis), representing about 2% of consolidated Group sales. Their contribution to Rexel’s 2014 adjusted consolidated EBITA was a loss of 3.3 million euros (vs. a profit of 0.8 million euros in 2013).

With regards to Brazil, which represents almost 60% of Rexel’s operations in Latin America on the basis of its 2014 consolidated sales, Rexel estimates that its value-creation prospects are no longer in line with its initial investment criteria and growth expectations, and do not justify maintaining its presence in the country. 

Chile and Peru, which form the rest of Rexel’s business in Latin America and whose combined sales amount to around 100 million euros, are markets whose size remains relatively small and limited in scope. Therefore, Rexel decided to sell its operations in Chile and Peru, simultaneously with the Brazil divestment, and discontinue its operations across Latin America.

The divestment of all of its operations in Latin America will allow Rexel to refocus its managerial efforts on its three main geographies (Europe, North America and Asia-Pacific) and continue its targeted acquisition policy in these regions.


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