Rexel SA, Paris, acquired two distributors to bolsters its business in the oil and gas vertical – Lenn International, Singapore, and Quality Trading, Bangkok,Thailand. The company also acquired Esabora, France, a provider of software tools for electrical contractors and other installers. In press releases from its Nov. 26 Investor Day, Rexel offered several details on these “bolt-on” acquisitions.
Singapore-based Lenn International is a wire and cable distributor focused on the offshore oil and gas market with customers across Southeast Asia. Lenn International generated sales of €20 million euros (approximately US $27 million) in the last fiscal year. Along with enhancing Rexel's presence in the oil and gas vertical segment, one of its strategic high-growth initiatives, the move will strengthen the company’s branch network in Asia.
Rexel says the acquisition of Thailand-based Quality Trading makes it the #3 player in what it calls “one of the most attractive markets in Asia.” The press release said the five-branch Quality Trading, Bangkok, Thailand, is one of the largest electrical distributors in the fast-growing Thai market and focuses on the OEM, MRO and lighting segments of the industrial and commercial end-markets. Quality Trading generated sales of €35 million euros (approximately US $37.5 million) in the last fiscal year.
The Esabora acquisition will provide Rexel’s customer base with innovative solutions to accelerate growth in energy efficiency and building automation. “Esabora complements the 2011 acquisition of Inoveha and will contribute to the creation of a digital platform accelerating Rexel’s transformation from a product distributor to a solution provider,” the release said. Esabora generated sales of c. € 2 million euros (approximately US $2.7 million) in the last fiscal year.
In other news at Rexel, the company said at its Investor Day that it “will remain a leading market consolidator, allocating an average annual budget of around €500 million (approximately US $679 million) to acquisitions.”
Click here to view the slides from Rexel's Nov. 26 Investor Day.