If Rexel's purchase of Hagemeyer goes through this quarter, both Rexel and its rival Sonepar stand to make substantial gains in world markets. The deal, announced in November, calls for Rexel to purchase Hagemeyer for roughly $4.5 billion, then sell 40 percent of the acquired assets to Sonepar. Rexel will increase its footprint mainly in Europe, while Sonepar will add to its presence in North America, Asia-Pacific and Austria, Sweden and Switzerland.

While both companies stand to increase their presence in world electrical markets, Sonepar will win big on the industrial and integrated supply side of the business with the acquisition of Hagemeyer North America. Though Hagemeyer's worldwide business is focused on the sale of electrical products and supplies to the contractor market, its North American business has more of an industrial twist.

According to Hagemeyer's 2007 annual report, 85 percent of its North American business is focused on industry—selling electrical products, safety supplies, tools, abrasives and related MRO products to industrial accounts. Hagemyer North America ranked 10th on INDUSTRIAL DISTRIBUTION's 2007 Big 50 distributors list, with nearly $1.9 billion in sales.

Hagmeyer's North American contractor business—which the company refers to as its construction & installation or “C&I” business—is concentrated in the United States, particularly in the Southeast and Mid-Atlantic regions. In Canada and Mexico, Hagemeyer's business is exclusively industrial, with many of its Canadian and Mexican customers serving the oil industry.

Hagemeyer NA is also focused on integrated supply and national accounts business, serving large end users such as Cummins Engine. A video presentation on the company's Web site describes the business in detail, with customer interviews describing the vast array of services Hagemeyer offers through its integrated supply program.

“Hagemeyer occupies an important position in the North American market for safety and industrial MRO products and is one of the leaders in the U.S. integrated supply market,” the report states.

For its part, Sonepar has been focused on building and diversifying its business in recent years. Its 2005 purchase of Stuart C. Irby Co. gave it a push into the utility market, for example. Based in Jackson, Miss., Irby has long served contractors, utilities and industrial accounts throughout the Southeast.

The Rexel/Hagemeyer acquisition is expected to close during the first quarter of 2008.