Rexel: A Key Player in Energy Transition, Strengthened by Strategic Acquisitions in 2024
- Administrateur
- Oct 22, 2024
- 2 min read
Rexel, a global leader in the distribution of energy products and services, continues to assert itself as a major player in the energy transition, particularly in electrification and electric vehicle (EV) charging infrastructure. In 2024, despite facing economic challenges in Europe and Asia-Pacific, Rexel advanced through strategic acquisitions and an ongoing digital transformation.
2024 Q3 Financial Results
In Q3 2024, Rexel posted sales of €4.762 billion, up 2.1% on a reported basis. However, on a same-day basis, sales decreased by 2.1%, mainly due to lower volumes and price deflation in electrification segments such as solar panels and EV charging infrastructure. These declines impacted Rexel’s performance, especially in Europe, where sales dropped by 4.4% on a comparable basis.
For the first nine months of 2024, Rexel reported sales of €14.39 billion, a slight decline of 0.2% on a reported basis. Strategic acquisitions, including Wasco in the Netherlands and Talley in the US, helped mitigate the negative effects in other regions.
Acquisition Strategy and Digital Transformation
To counter economic headwinds, Rexel bolstered its acquisition strategy. In addition to acquiring Wasco, Rexel strengthened its presence in North America with the acquisitions of Talley and Electrical Supplies Inc, two distributors of electrical products. These acquisitions enhance Rexel’s capabilities in energy infrastructure.
Simultaneously, Rexel continues its digital transformation, focusing on automating its sales processes. In Q3 2024, digital sales accounted for 32% of total revenue, compared to 29% the previous year, showcasing the company's adaptability to market shifts.
Rejection of Unsolicited Acquisition Offer
In September 2024, Rexel received an unsolicited preliminary acquisition offer from QXO, a private equity firm, with an indicative price of €28 to €28.40 per share. Rexel’s Board of Directors unanimously rejected the offer, considering it significantly undervalued the company and did not reflect the potential of its Power Up 25 strategic plan. This plan aims to enhance Rexel’s profitability through digitalization and new energy solutions.
Conclusion
Despite challenges in the electrification sector, Rexel remains strong thanks to its acquisition strategy and commitment to digital transformation. The company, confident in its ability to capture opportunities from the energy transition, continues to lead in the electrical distribution sector, backed by a forward-thinking management focused on innovation.
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