Rexel S.A

Rexel, a publicly held distributor of energy management products and services, has agreed to acquire GCG, a specialty wire and cable distribution platform, from Audax Private Equity in a transaction expected to close by year end. GCG operates through two complementary segments, Custom Engineered Solutions and Connectivity and Power Solutions, serving data centers, power infrastructure, defense, building systems, water, telecom and industrial end markets. Since 2019, GCG has grown to more than $1.1 billion in revenue through organic growth and strategic acquisitions including United Wire & Cable, CableMaster, RWL, Paige, and Allied Wire & Cable, and is expected to reach over $1.1 billion of revenue in 2026. The combination is expected to extend Rexel's presence in high-growth, mission-critical end markets including data center and power infrastructure, and to bring GCG's engineering-led distribution model and proprietary product portfolio into Rexel's broader platform. Solomon Partners and J.P. Morgan advised GCG and Audax, while Guggenheim Securities and Rothschild & Company advised Rexel.

Rexel has agreed to acquire GCG, a leading US provider of specialty wire and cable, connectivity, power and engineered solutions for critical infrastructure applications, from Audax Private Equity at an enterprise value of approximately $1.4 billion. Chicago-based GCG operates 16 locations with roughly 950 employees and is expected to reach over $1.1 billion of revenue in 2026, with a projected EBITA margin of about 11%. The price corresponds to a multiple of less than 8x 2026 estimated EBITDAaL including anticipated run-rate synergies, and Rexel said the deal meets all its financial criteria, including EPS accretion in year one and value creation by year three. Rexel plans to finance the transaction with existing cash on hand and about €800 million of debt, alongside an equity raise of up to €500 million through an accelerated bookbuilding offering, to preserve its credit rating and keep its net financial debt to EBITDAaL ratio around 2x from 2027 onwards. The acquisition, unanimously approved by Rexel's board, is expected to close by the end of 2026, subject to customary regulatory approvals and closing conditions.

Rexel's Board of Directors appointed Armando Martinez as an observer during its July 27, 2026 meeting, with plans to nominate him as a full board member at the 2027 Shareholders' General Meeting. In his consultative role, he will attend board meetings and contribute his experience and expertise. Martinez is the former CEO of Iberdrola S.A., one of Europe's largest utilities, where he held senior leadership roles since 1995 across energy infrastructure, power generation, and electricity networks in Europe, North America, and Latin America. He currently serves on the board of Alba and has held directorships at Avangrid, Iberdrola España, Scottish Power Energy Networks Holdings, and Iberdrola Mexico. Rexel, a global distributor of energy products and services, reported sales of €19.4 billion in 2025 and operates 1,876 branches in 17 countries.