The Rexel Group, currently the number one worldwide distribution network for electrical supplies, announced in mid-July that it had reached an agreement to acquire GE Supply, General Electric's electrical distribution business.

The price was $725 million. The deal was expected to be finalized in early August.

Rexel officials said in a statement that the acquisition of GE Supply would help increase its presence in the $64 billion market for electrical products in the United States, considered by observers to be the world's largest and fastest growing electrical distribution market. Globally, Rexel has 1,686 branches in 24 countries.

“Rexel will double its presence in the U.S. with nearly $5 billion in sales and reinforce its leadership in the world's largest and fast-growing electrical distribution market,” said Jean-Charles Pauze, chairman and CEO of Rexel, in a statement. “The acquisition of GE Supply not only increases our presence in the U.S., but demonstrates Rexel's ability to drive consolidation of the industry.”

Over the past year and a half, Rexel has acquired other electrical distribution businesses in Europe and the United States, including, most recently, Elektro Material (Switzerland), Ellettro Bergamo (Italy), and CLS (U.S.).

When the sale is finalized, GE Supply will operate as a stand-alone organization and will report to the newly created Rexel U.S. Holding group, which will be headed by Dick Waterman, Rexel, Inc.'s executive vice president and CEO.

Jeff Schaper, senior vice president and CEO of GE Supply, will continue to operate the business with his leadership team.

“The GE Supply team has done a great job of growing the business,” said James Campbell, president and CEO, GE Consumer & Industrial. “Rexel is committed to fostering GE Supply's continued growth by providing support that will help the business expand its presence, products and services. It's a great fit.”

Clayton, Dubilier & Rice, Inc., a private-equity investment firm, led the investor group that acquired Rexel in 2005. Roberto Quarta, a CD&R operating partner, serves as the chairman of the holding company that controls Rexel.

“Rexel's management team continues to demonstrate its ability to build significant value by executing an acquisition strategy in the attractive and highly fragmented global electrical distribution market,'' said Quarta in a statement.

“This is a transformational opportunity for Rexel in the world's largest electrical distribution market,'' said David Novak, a CD&R financial partner. “The combination of these two businesses will enhance service quality, product mix and customer base.''