Rexel has entered into an agreement to acquire GCG, a U.S. specialty infrastructure distribution company, from Audax Private Equity for an enterprise value of approximately $1.4 billion. The transaction will expand Rexel’s presence in electrical infrastructure, data centers, power distribution, and digital connectivity while adding a business expected to generate more than $1.1 billion in annual revenue.
Headquartered in Chicago, GCG operates 16 locations and employs approximately 950 people. The company specializes in distributing specialty wire and cable, connectivity equipment, electrical power products, and engineered solutions for critical infrastructure projects.
The acquisition has been unanimously approved by Rexel’s board of directors and is expected to close before the end of 2026, subject to regulatory approvals and customary closing conditions.
GCG operates a business model combining specialty product distribution with engineering and other technical services.
Its capabilities include custom assembly, product modification, kitting, testing, and rapid fulfillment, allowing customers to obtain specialized products and solutions for complex infrastructure projects.
More than 75% of GCG’s revenue incorporates value-added products or services.
Rexel believes these capabilities will expand its role in infrastructure projects by allowing it to participate earlier in product design and specification.
The combination is also intended to help customers reduce installation time and labor requirements while improving access to specialized equipment and technical expertise.
GCG serves several markets experiencing increased investment in electrical and digital infrastructure.
More than 60% of its revenue comes from high-growth segments, including data centers, power infrastructure, grid modernization, communications, defense, and utilities.
These markets are benefiting from increased electricity demand, artificial intelligence infrastructure development, and the growing technical requirements of modern electrical systems.
Since 2019, GCG has generated double-digit annual revenue growth.
The company expects to report more than $1.1 billion in revenue during 2026, with an anticipated EBITA margin of approximately 11%.
The acquisition values GCG at less than eight times estimated 2026 EBITDA after leases, including anticipated annual run-rate synergies.
Rexel expects the transaction to increase adjusted earnings per share during the first year following completion and create additional value through operational improvements and commercial expansion.
The company anticipates cost synergies from increased purchasing scale, logistics optimization, insourcing, and selected operational efficiencies.
It also expects opportunities to introduce GCG’s specialty distribution and engineered solutions to Rexel’s existing customers.
The transaction is aligned with Rexel’s Axelerate 28 strategy, which emphasizes growth in core geographic markets and expansion into higher-value products and services.
The acquisition will increase Rexel’s exposure to specialized infrastructure markets while complementing its existing electrical products distribution business.
To finance the purchase, Rexel intends to use a combination of existing cash and approximately €800 million in debt.
The company also plans to raise up to €500 million in equity through an accelerated bookbuilding offering, subject to market conditions.
The proposed equity financing is intended to help preserve Rexel’s credit rating and maintain its balance sheet flexibility following the acquisition.
Management is targeting a net financial debt-to-EBITDA ratio of approximately 2.0 times beginning in 2027.
Rexel also intends to maintain its dividend policy, which targets a payout of at least 40%, while continuing to pursue acquisitions that support its growth strategy.
The transaction brings together two businesses with complementary customer relationships, infrastructure products, and technical services.
For GCG, joining Rexel would provide access to a larger international distribution network and additional opportunities to expand its engineered solutions business.
For Rexel, the acquisition establishes a larger U.S. specialty infrastructure platform serving customers across electrical power and digital connectivity.
Support: Guggenheim Securities and Rothschild & Co. served as financial advisors to Rexel, while Sidley Austin acted as legal counsel. And Solomon Partners and J.P. Morgan served as financial advisors to GCG, with Kirkland & Ellis and Fredrikson & Byron providing legal counsel.
KEY QUOTES:
“The acquisition of GCG is an exciting and major step forward in Rexel’s strategy. It significantly expands our addressable market, strengthening our position in key, fast-growing segments. It moves Rexel into higher-value parts of the infrastructure value chain and creates a more complete offering across electrical power and digital connectivity.”
“The acquisition of GCG, an exceptional platform combining strong growth, an attractive margin profile and differentiated capabilities is fully in line with Rexel’s Axelerate 28 strategy, which aims at shaping our portfolio towards more growth and more value-added, and is a significant step in the direction of achieving our mid-term objectives.”
Guillaume Texier, CEO Of Rexel