Rexel, a global leader in the distribution of electrical products and services, has announced a definitive agreement to acquire GCG, a premier US-based provider of specialty wire, cable, and engineered infrastructure solutions. The deal, valued at approximately $1.4 billion, marks a strategic pivot for Rexel as it looks to solidify its footprint in the high-growth electrification and digital connectivity sectors.
Headquartered in Chicago, GCG operates 16 locations and employs a workforce of roughly 950. The firm has demonstrated impressive financial momentum, having delivered double-digit annual revenue growth since 2019. It is projected to generate over $1.1 billion in revenue by 2026, with an estimated EBITA margin of 11%.
Guillaume Texier, CEO of Rexel, described the acquisition as a “major step forward” in the company’s “Axelerate 28” strategic plan. “It moves Rexel into higher-value parts of the infrastructure value chain and creates a more complete offering across electrical power and digital connectivity,” Texier said. “GCG brings high-quality, talented teams with a strong reputation, which will be key assets as we build a leading specialty infrastructure platform together.”
The acquisition positions Rexel at the center of several critical industrial trends. Over 60% of GCG’s revenue is tied to high-growth areas, including data centers, utility grid modernization, defense, and communications—sectors currently seeing a surge in investment due to the rapid expansion of artificial intelligence and increasing electricity demands. Beyond simple distribution, GCG offers a suite of value-added services such as engineering, custom assembly, testing, and rapid fulfillment, allowing the firm to embed itself deeply into its customers’ project lifecycles.
Financially, the deal is expected to be immediately accretive to Rexel’s adjusted earnings and EBITA margin. The company plans to realize further value through cost synergies related to logistics optimization and scale, as well as by cross-selling GCG’s specialized engineering capabilities to Rexel’s existing, broader customer base.
To fund the $1.4 billion transaction, Rexel intends to utilize existing cash alongside approximately €800 million in new debt. Furthermore, the company plans to raise up to €500 million through an accelerated bookbuilding equity offering. Rexel management noted that this financing structure is designed to preserve the company’s credit rating and maintain a healthy net financial debt-to-EBITDA ratio of roughly 2x by 2027.
The acquisition has already received unanimous approval from Rexel’s Board of Directors. The transaction is expected to close by the end of 2026, pending customary regulatory approvals and closing conditions. With this move, Rexel aims to balance a disciplined dividend policy with an aggressive, value-creative acquisition strategy, ensuring long-term returns for shareholders while aggressively capturing growth in the infrastructure market.
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