Hagemeyer OKs $4.6 billion Rexel buyout
Industrial Distribution staff -- Industrial Distribution, 11/26/2007 6:40:00 AM
Hagemeyer agreed to a $4.6 billion takeover bid that would see the Dutch firm split between the world’s two largest electrical distributors.Under the terms of the deal, France’s Rexel would buy Hagemeyer and sell about 40 percent of its assets to French peer Sonepar.
The agreement, which offers a premium of about 55 percent over Hagemeyer’s one-month average share price prior to Sept. 9, when Rexel submitted its initial bid, has Sonepar acquiring Hagemeyer’s North American, Australian, Swiss, Austrian, Swedish, Chinese and Southeast Asian businesses from Rexel.
Rexel said the transaction, expected to close during the first quarter of 2008, will give it annual sales of about $20.8 billion and broaden its European footprint to comprise about 57 percent of its total annual sales. The company said it expects the deal to generate savings of up to 1.5 percent of 2007 sales by 2011.
For Sonepar, the deal consolidates its presence in North America and the Asia-Pacific region.
"We look forward to the completion of the offer that will allow us to expand our worldwide footprint in North America and Asia Pacific, as well as improve our position in selected European countries. Working with the Hagemeyer teams in these regions gives us prospects to build a stronger and promising future together," Sonepar chairwoman and CEO Marie-Christine Coisne said.
Hagemeyer’s North American operation ranked 10th on INDUSTRIAL DISTRIBUTION’s 2007 Big 50 list of distributors, with regional sales of $1.88 billion last year.
Sonepar ranked first on ID’s Top 10 Electrical Distributors list, with worldwide sales of $12.4 billion in 2006.
Rexel ranked second on the Top 10, with worldwide sales of $12.3 billion last year.
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