| Type | public limited company with a management board and a supervisory board |
|---|---|
| Industry | Professional distribution of electrical supplies |
| Founded | 1967 (under the name CDME: Compagnie de Distribution de Matériel Electrique) |
| Headquarters | Paris, France |
| Area served | Worldwide |
| Key people | Jean-Charles Pauze (CEO) |
| Revenue | 11.96 billion (2010) |
| Net income | 229 million euros (2010) |
| Owner(s) | Ray Investment (Clayton, Dubilier & Rice, Eurazeo and BAML Capital Partners) |
| Employees | 28,000 (2010) |
| Website | www.rexel.com |
Rexel is a French group founded in 1967. It is specialised in the professional distribution of electrical supplies. The solutions offered by Rexel cover a wide range of equipment, including lighting, security, automation, climate control, communication, building automation and renewable energies. The Group has 2,200 sales outlets (branches) in 37 countries and 28,000 employees. Rexel is listed on the Paris stock exchange (Eurolist, Euronext: RXL). The company is a global leader in its market[1].
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The Rexel group originated from the Compagnie de Distribution de Matériel Electrique (CDME), created in 1967 by Compagnie LEBON. CDME was created by the merger of four companies (Revimex, Facen, Sotel and Lienard-Soval). Specialised in the sale of electrical supplies, the company developed in France by acquiring family-run regional companies. In 1978, CDME launched a branch for the distribution of professional electronic and computing equipment, and diversified into the industrial supplies trade.
From the 1980s, CDME developed in European and international markets, establishing a presence in Cyprus, Saudi Arabia, Portugal, Benelux, the Federal Republic of Germany, Singapore and Canada.
In 1983, CDME entered the unlisted securities market of the Paris stock exchange and became the leading distributor of electrical supplies in France. The company held more than 20 percent of the market in France and a 6-percent share worldwide. In 1986, the company established a presence in the United States. At the time, CDME had around 350 sales outlets, including 65 abroad. In 1987, the Compagnie Française de l’Afrique Occidentale (CFAO) became CDME’s leading shareholder (68 percent).
Pinault Group acquired a majority stake in CDME in December 1990. Pinault Group’s new subsidiary for distributing electrical supplies represented 38 percent of its revenues. CDME was then the leading distributor of electrical supplies (30 percent market share) in France, Belgium and Portugal.
In June 1993, CDME merged with Groupelec Distribution (third on the French market). The group adopted the Rexel name.
In the 1990s, the Group continued to strengthen its business in France, Europe and the United States. The company refocused its business on the distribution of electrical supplies. In effect, it had sold most of its professional electrical distribution business in 1988 and in 1994 sold its subsidiary GDFI, the leading French distributor of industrial supplies.
Gradually, the Group’s subsidiaries reinforced the Rexel brand abroad. Willcox et Gibbs in the United States became Rexel Inc. in 1995, Rexel Italia was created in 2000 from the merger of 10 Italian subsidiaries, and the first joint venture was created in China under the Rexel Hailongxing name.
In 2001, Rexel generated 75 percent of its revenues abroad. At the time, the Group was world leader in its sector with 1,900 sales outlets and 25,000 employees in 33 countries, and it was actively pursuing its acquisitions policy.
The PPR Group (Pinault-Printemps-Redoute) announced the sale of Rexel[2], which became definitive on March 16, 2005 when a capital stake was acquired by a consortium made up of Clayton, Dubilier & Rice, Eurazeo, and Merril Lynch Global Private Equity[3]. Rexel delisted from Paris stock exchange on April 25, 2005.
Rexel continued to refocus on its core business. It proceeded to sell assets and engaged in a series of acquisitions. In parallel to the 29 small and medium acquisitions made during this period, in 2006 the Group bought General Electric’s American distribution subsidiary, GE Supply, which it renamed Gexpro[4]. Thanks to this move, Rexel became the market leader in North America and Asia Pacific. Gexpro reinforced the Group’s service business among industrial key accounts. In 2007, Rexel launched a joint takeover bid with the Sonepar Group for the Hagemeyer Group, which was the global number three at the time. In March 2008, Rexel acquired a majority stake in Hagemeyer’s European assets (Elektroskandia in the Nordics, ABM in Spain and Newey & Eyre in the United Kingdom)[5]. Following this acquisition, Rexel doubled its revenues in Europe, increased its sales outlets in the region by 50 percent, and established a presence in five new countries (Finland, Norway and the Baltic Countries). Rexel occupied the number one or two positions in Germany, Spain, the United Kingdom, Sweden and Finland.
In 2007, Rexel changed its structure and became a limited liability company with a management board and a supervisory board (“société anonyme à directoire et conseil de surveillance”). The company was floated on Euronext Paris on April 4, 2007[6]. In 2008, Rexel’s share of the global market for distributed professional electrical supplies stood at approximately 9 percent. With 2,500 sales outlets across 34 countries, the Group became one of the sector’s key players.
In 2011, the company undertook new acquisitions in emerging markets. In this way, Rexel has strengthened its presence in China with the acquisition of Lucky Well Zhineng[7] and entered the Brazilian and Indian markets with Nortel Suprimentos Industriais and Yantra Automation respectively[8] and in Peru.
Rexel provides the entire range of equipment necessary for installing and using electricity, mainly in residential, commercial and industrial buildings. The Group also supports projects for major industrial infrastructures (mines, oil rigs, etc.)
The products offered by Rexel cover the entire range of medium-voltage electrical circuits in buildings: secure meters (circuit breakers), electrical conductors (wires and cables), fixtures and protections (skirting boards and cable runs), as well as equipment for protecting circuits (secondary and primary circuit breakers) and connecting and controlling appliances (sockets, contactors and switches). In addition, the Group provides equipment for low-voltage circuits (internet, hi-fi, television and telephone) and technical building management (home and building automation).
The company also offers different electrical equipment for lighting, heating, ventilation, climate control, motors, and brown and white goods, etc. Over the last few years, Rexel has developed low-energy solutions (lighting and high-performance motors), as well as products using renewable energies, solar and wind power, geothermal and aerothermal energy (heat pumps, solar water heaters and climate control solutions).
Rexel designs, advises and markets electrical solutions based on major manufacturers’ offerings (50 percent of its revenues come from 25 main manufacturers). The company carries out its distribution business through generalist and specialist outlets organised in a network of branches. In addition, Rexel offers its clients e-commerce systems, composed of online stores for small and medium companies and electronic data interchange (EDI) systems for key accounts.
Rexel offers additional services within its distribution business. These services include consulting and sales (support for project planning, recommendations, energy audits and financing) and logistics (creation of assembly kits, express delivery and overnight delivery to secure drop-off points).
Rexel relies on 130 logistical centers worldwide to ensure daily supplies of more than 35,000 inventoried products for its sales outlets and clients. For major projects, Rexel can provide ad-hoc project logistical teams.
Rexel offers products for a wide variety of clients and in particular installation companies, end-users with in-house installation departments, and original equipment manufacturers and panel builders. In 2009, its clients belonged to the following categories:
The Rexel Group has defined a three-pronged development strategy:
The Rexel Group has a sales network of more than 40 brands, the largest of which are Rexel, Gexpro, Hagemeyer and Elektroskandia.
Rexel, the Group’s main brand, is present in 12 countries: Australia, Belgium, Chile, China, the Czech Republic, France, Italy, Luxembourg, the Netherlands, New Zealand, Portugal and the United States.
The Hagemeyer brand is present in three countries: Australia, Germany and the Netherlands.
Originally Norwegian, the Elektroskandia brand is present in Northern and Eastern Europe (Estonia, Finland, Latvia, Lithuania, Norway, Poland and Russia).
The Group also has around 40 generalist and specialist brands in North America, Latin America, Europe and Asia Pacific.
Since 2007, the Rexel Group has operated as a limited liability company with a management board and a supervisory board (“société anonyme à directoire et conseil de surveillance”).
The board of directors is the Group’s governing and decision-making body. It is made up of the following five members:
The supervisory board ensures that the strategy implemented by the board of directors is in line with the strategic priorities defined by the group. It authorises the annual budget, the strategic plan, capital transactions, bond issues and all major operations that could modify the group’s scope of activity or financial structure. It is made up of four specialised committees: the Audit Committee, Compensation Committee, Nominations Committee and Strategic Committee.
The supervisory board is made up of the following 12 members[9]:
The executive team manages the group’s business activities. It brings together the managing directors of each geographical zone, the communications and sustainable development director and members of Rexel’s management board. Rexel’s executive team is made up of the following members[10]:
Rexel group’s revenues at December 31, 2009 were 11.3 billion euros. The breakdown by geographical zone was as follows: Europe (59.3 percent), North America (29.3 percent), Asia Pacific (7.5 percent) and other countries (3.9 percent). The breakdown by sector is as follows: service sector (43 percent), residential sector (25 percent) and industrial sector (32 percent). In 2009, the Group’s operating income stood at 315.9 million euros[12].
Rexel was listed on the Paris stock exchange for the first time in 1983 (ISIN code: FR0010451203). The Group was then acquired in 1990 by the Pinault Group. On December 13, 2004, the PPR Group signed off on the sale of its subsidiary Rexel to the investment consortium Ray Investment, composed mainly of Clayton Dubilier & Rice, Eurazeo and Merrill Lynch Global Private Equity (as known as BAML Capital Partners since 2009)[13].
The Rexel Group withdrew from the Paris stock exchange in 2005 and re-entered it in 2007[14].
On June 30, 2010, the company’s shareholding was broken down as follows[15]:
Rexel is included in several share indexes: SBF 120, CAC Mid 100, CAC All-Trade, CAC AllShares, FTSE EuroMid and FTSE4Goo and STOXX600.
The Rexel Group has 40 brands in a network of 2,100 branches in 37 countries. The company has 28,000 employees, including 23.6% women. In 2009, 59 percent of Rexel group branches participated in recycling the waste from electrical and electronic equipment[16].
Rexel Group subsidiaries participate in social initiatives. Rexel supports its employees’ involvement in local projects (medial research, vocational training and humanitarian work).
For example, in 2008 Rexel Canada launched the “Hungry for Change” campaign to raise funds for child victims of malnutrition worldwide. In 2009, the group’s Australian subsidiary participated in volunteer first-aid work led by the local Red Cross during the fires[17].
Rexel France has signed a tutoring partnership with the Fondation Télémaque to help young people with their academic paths and studies[18].
For employees, the Group’s social welfare initiatives received a trophy for “international corporate social responsibility” on December 15, 2010. This trophy was awarded fro the Group’s “Rexel + Protection For All”[19] universal welfare scheme, which guarantees a minimum level of social protection against occupational hazards (work accidents and occupational illnesses) in countries where the compulsory regime falls below the standards defined by the Group[20].
The Rexel Group has initiated a range of action to limit the impact of its business on the environment. Since 2009, 93 percent of its European branches collect end-of-life electrical equipment from their clients (cables, light bulbs and fluorescent tubes). Many branches also implement selective waste disposal (for cardboard, plastic and wood) for recycling or reuse. In addition, Rexel modified its shipping practices in many countries in 2009 to reduce the number of vehicles and their fuel consumption. Rexel has teamed up with numerous suppliers to offer office supplies and products that respect the environment. More recently, the company carried out its first carbon report for 2010[21].
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